10/21/2025 – 05:00 PM
GRAND RAPIDS, Mich.–(BUSINESS WIRE)–
Northpointe Bancshares, Inc. (NYSE: NPB) (“Northpointe” or the “Company”), holding company for Northpointe Bank, today reported net income to common stockholders of $20.1 million, or $0.57 per diluted share, for the third quarter of 2025. This compares to $18.0 million, or $0.51 per diluted share, for the second quarter of 2025, and $17.1 million, or $0.67 per diluted share, for the third quarter of 2024. The decrease in earnings per diluted share from the prior year quarter reflects additional common shares issued from the initial public offering completed on February 13, 2025.
“The momentum we are building across our business lines resulted in strong financial performance in the third quarter, highlighted by strong balance sheet growth and an improvement in net income from the prior quarter and year,” remarked Chuck Williams, Chairman and Chief Executive Officer. “We’ve continued to experience exceptional performance in our Mortgage Purchase Program business, increasing balances by $1.7 billion over the prior year level and funding $9.8 billion in total loans during the third quarter. In the residential lending channel, both mortgage locks and applications increased from the prior quarter, and all-in-one loan balances increased by 23% annualized. On the funding side, interest-bearing demand deposits increased by over $300 million from the prior quarter as we completed an initiative to bring in valuable new custodial deposits during the third quarter.”
Third Quarter 2025 Highlights
Net income to common stockholders of $20.1 million, up $2.1 million from the prior quarter.
Delivered improved financial performance from the prior quarter, including:
Return on average equity of 14.23%, compared to 13.60% in the prior quarter.
Return on average tangible common equity of 15.41%, compared to 14.49% in the prior quarter (see non-GAAP reconciliation).
Return on average assets of 1.34%, flat from the prior quarter.
Efficiency ratio of 53.38%, compared to 53.80% in the prior quarter.
Net interest income after provision increased by $3.6 million from the prior quarter, reflecting strong growth in average interest-earning assets and expansion in net interest margin, partially offset by an increase in the provision for credit losses.
Non-interest income increased by $1.6 million from the prior quarter driven primarily by increases in the fair value of loans held for investment and lender risk account (“LRA”) attributable to changes in market interest rates.
Non-interest expense increased by $2.6 million from the prior quarter driven primarily by higher salaries and benefits, including a $935,000 increase in expense related to a legacy stock appreciation rights plan resulting from the increase in stock price, as well as higher other taxes and insurance expense related to FDIC insurance premiums.
Loans held for investment increased by $470.4 million, or 34% annualized, from the prior quarter, reflecting strong growth in Mortgage Purchase Program (“MPP”) and 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.
Total deposits increased by $295.6 million from the prior quarter driven primarily by new custodial account balances onboarded during the third quarter of 2025.
Wholesale funding ratio improved to 67.58% from 70.71% in the prior quarter.
Total delinquent loans (including non-performing loans and loans past due 31 to 89 days) decreased by $4.6 million from the prior quarter.
The Company’s Board of Directors declared a regular quarterly cash dividend of $0.025 per share, payable on November 3, 2025 to shareholders of record as of October 15, 2025.
Net Interest Income
Net interest income before provision was $40.3 million for the third quarter of 2025, an increase of $3.8 million compared to the second quarter of 2025. The linked quarter increase reflects a 3 basis point improvement in net interest margin and a $465.6 million increase in average interest-earning assets. As compared to the third quarter of 2024, net interest income before provision increased by $11.9 million, driven primarily by a 27 basis point improvement in net interest margin and a $1.33 billion increase in average interest-earning assets.
Net interest margin was 2.47% for the third quarter of 2025, an increase of 3 basis points compared to 2.44% in the second quarter of 2025. This increase was driven primarily by an improvement in loan yields and the mix of interest-earning assets, along with flat overall funding costs. As compared to the third quarter of 2024, net interest margin increased by 27 bps, as the decrease in the yield earned on interest-earning assets was outpaced by a larger decrease in the rate paid on interest-bearing liabilities.
Average interest-earning assets increased by $465.6 million from June 30, 2025 and by $1.33 billion compared to September 30, 2024. The increases from both comparable periods reflect the strong growth in MPP and AIO balances, partially offset by continued run-off in the remainder of the loan portfolio.
Provision for Credit Losses
The Company recorded a total provision for credit losses (including provisions for loans and unfunded commitments) of $828,000 in the third quarter of 2025, compared to $583,000 in the second quarter of 2025 and $178,000 in the third quarter of 2024. The Company’s quarterly provision for credit losses reflects 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 increases from both comparable periods were driven primarily by higher loan charge-offs, largely attributable to two larger mortgage loans.
Non-interest Income
Non-interest income was $24.0 million for the third quarter of 2025, an increase of $1.6 million compared to the second quarter of 2025 and a decrease of $1.7 million compared to the third quarter of 2024.
MPP fees were $1.5 million for the third quarter of 2025, an increase of $102,000 compared to the second quarter of 2025 and a decrease of $81,000 compared to the third quarter of 2024. The linked quarter increase reflects higher levels of funded loans in the MPP business and the decrease from prior year quarter reflects lower levels of participations.
Loan servicing fees were $1.1 million for the third quarter of 2025, a decrease of $408,000 compared to the second quarter of 2025 and an increase of $1.4 million compared to the third quarter of 2024. Both the linked quarter increase and decrease from prior year quarter were driven primarily by 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 $21.0 million for the third quarter of 2025, compared to $19.4 million for the second quarter of 2025 and $24.6 million for the third quarter of 2024. Net gain on sale of loans includes the capitalization of new MSRs, gains or losses on the sale of portfolio loans, 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 2025 included an increase of $2.2 million from the combined change in fair value of loans held for investment and LRA, both attributable to changes in market interest rates, and a $1.2 million gain on the sale of portfolio loans. Excluding these items (see Net Gain on Sale of Loans table below for a reconciliation), net gain on sale of loans was $17.5 million, flat on a comparative basis from the second quarter of 2025 and up from $14.8 million on a comparative basis in the third quarter of 2024. The increase from the prior year quarter was driven primarily by higher saleable residential mortgage rate lock commitments and originations.
Other non-interest income was $285,000 for the third quarter of 2025, compared to a loss of $32,000 for the second quarter of 2025 and a loss of $445,000 for the third quarter of 2024. The Company recognized net gains on sale of other real estate owned of $282,000 in the third quarter of 2025 compared to net losses of $30,000 in the second quarter of 2025 and net losses of $180,000 in the third quarter of 2024. Other non-interest income in the third quarter of 2024 also included $312,000 in losses on lease termination and sale of assets.
Non-interest Expense
Non-interest expense was $34.4 million for the third quarter of 2025, an increase of $2.6 million compared to the second quarter of 2025 and an increase of $5.0 million compared to the third quarter of 2024.
Salaries and benefits expense was $24.3 million for the third quarter of 2025, an increase of $2.1 million compared to the second quarter of 2025. This increase was driven primarily by bonus and incentive compensation, which increased by $1.9 million, and included a $935,000 increase in expense related to a legacy stock appreciation rights plan resulting from the increase in stock price, along with higher incentive compensation from the improvement in business activity over the same period. As compared to the third quarter of 2024, salaries and benefits expense increased by $3.6 million, driven primarily by higher bonus and incentive compensation (up $1.7 million), reflecting higher expense related to the legacy stock appreciation rights plan and additional restricted stock expense from the initial public offering, as well as higher variable compensation on mortgage production (up $946,000).
Professional fees decreased by $92,000 on a linked quarter basis, and increased by $561,000 compared to the third quarter of 2024. The increase compared to the prior year quarter was driven primarily by higher ongoing customary public company compliance costs.
Other taxes and insurance increased by $808,000 on a linked quarter basis, and by $396,000 compared to the third quarter of 2024. The increase for both compared periods was driven primarily by higher FDIC assessment expense resulting from the growth in assets and continued utilization of capital.
All other categories of non-interest expense decreased by $182,000 on a linked quarter basis and increased by $474,000 compared to the third quarter of 2024. The linked quarter decrease was driven primarily by lower servicing expenses related to additional fees incurred during the prior quarter. As compared to the third quarter of 2024, the increase was driven primarily by additional expenses associated with the Company’s private label outsourcing of its non-specialized mortgage servicing to a scaled sub-servicer.
Taxes
Income tax expense for the third quarter of 2025 was $7.0 million, compared to $6.3 million for the second quarter of 2025 and $5.9 million for the third quarter of 2024. The Company’s effective tax rate was 24.00% for the third quarter of 2025, compared to 23.67% for the second quarter of 2025 and 24.02% for the third quarter of 2024.
Balance Sheet Highlights
Total assets were $6.84 billion at September 30, 2025, representing an increase of $408.7 million compared to June 30, 2025 and an increase of $1.45 billion compared to September 30, 2024. The increase in total assets at September 30, 2025, compared to both June 30, 2025 and September 30, 2024, was driven primarily by an increase in total loans, particularly growth in MPP and AIO balances.
Gross loans held for investment were $5.97 billion at September 30, 2025, an increase of $470.4 million, or 34% annualized, compared to June 30, 2025 and an increase of $1.56 billion, or 35%, compared to September 30, 2024. The linked quarter increase in gross loans held for investment was driven primarily by growth in MPP balances, which were up 65% annualized and growth in AIO loans, which were up 23% annualized. These increases were partially offset by a decrease of $41.5 million in the remainder of the loans held for investment portfolio. Loans held for sale totaled $259.8 million at September 30, 2025, compared to $331.2 million at June 30, 2025 and $345.0 million at September 30, 2024, and reflect the timing of closing saleable residential mortgage originations and any portfolio loan sales (which are temporarily moved to held for sale) completed during the quarter.
The Company continues to focus on growing its two main loan portfolios, AIO and MPP. Outside of these two portfolios, no other significant loans are being added to the loans held for investment portfolio. At September 30, 2025, virtually all of the loan portfolio was comprised of loans collateralized by residential property.
Total deposits were $4.77 billion at September 30, 2025, an increase of $295.6 million, or 26% annualized, compared to June 30, 2025 and an increase of $1.24 billion, or 35%, compared to September 30, 2024. The linked quarter increase was driven primarily by higher interest-bearing demand deposits as the Company completed its initiative to bring in a new custodial account relationship during the third quarter. As compared to September 30, 2024, the increase reflected a higher level of brokered CDs, along with increases in the Company’s diversified digital deposit banking platform including non-interest bearing demand, interest-bearing demand, retail CDs and rateboard CDs, including the new custodial account relationship.
Total borrowings were $1.37 billion at September 30, 2025, an increase of $94.1 million compared to June 30, 2025 and an increase of $60.3 million compared to September 30, 2024. The increase for both compared periods was driven primarily by utilization of the Company’s short-term line of credit borrowing facilities.
Asset Quality
The Company’s allowance for credit losses was $12.3 million at September 30, 2025, $12.4 million at June 30, 2025 and $12.2 million at September 30, 2024. The allowance for credit losses represented 0.21% of loans held for investment at September 30, 2025, 0.23% of loans held for investment at June 30, 2025 and 0.28% of loans held for investment at September 30, 2024.
Net charge-offs were $977,000, or 7 basis points annualized as a percentage of average loans, for the third quarter of 2025. This compares to $488,000, or 4 basis points annualized as a percentage of average loans, for the second quarter of 2025, and $554,000, or 5 basis points annualized as a percentage of average loans, for the third quarter of 2024.
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 $85.2 million at September 30, 2025 ($57.7 million excluding guaranteed loans), $87.1 million at June 30, 2025 ($58.5 million excluding guaranteed loans) and $81.9 million at September 30, 2024 ($44.7 million excluding guaranteed loans). Non-performing assets represented 1.25% of total assets at September 30, 2025 (0.85% excluding guaranteed loans), 1.35% at June 30, 2025 (0.91% excluding guaranteed loans) and 1.52% at September 30, 2024 (0.84% excluding guaranteed loans).
Capital
At September 30, 2025, 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 September 30, 2025 are estimates, pending completion and filing of the Bank’s regulatory reports.
Earnings Presentation and Conference Call
Northpointe will host its third quarter of 2025 earnings conference call on October 22, 2025 at 10:00 a.m. E.T. During the call, management will discuss the third quarter of 2025 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. 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 make changes to 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, elevated 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; the ability to keep pace with technological changes, including changes regarding maintaining cybersecurity and the impact of generative artificial intelligence; increased competition in the financial services industry, particularly from regional and national institutions; 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; the impact of action or inaction by the federal government, including as a result of any prolonged government shutdown; 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.
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,
2025
June 30,
2025
Sept 30,
2024
Sept 30,
2025
Sept 30,
2024
Interest income
Loans – including fees
$
94,044
$
86,260
$
75,033
$
252,376
$
210,660
Investment securities – taxable
87
158
157
399
477
Federal Home Loan Bank (“FHLB”) stock – taxable
1,605
1,553
1,641
4,786
4,751
Interest bearing deposits
6,100
5,122
6,520
16,518
18,943
Total interest income
101,836
93,093
83,351
274,079
234,831
Interest expense
Deposits
48,169
43,582
40,937
128,061
111,968
Subordinated debentures
679
678
1,271
2,244
2,855
Borrowings
12,657
12,313
12,740
36,534
35,815
Total interest expense
61,505
56,573
54,948
166,839
150,638
Net interest income
40,331
36,520
28,403
107,240
84,193
Provision for credit losses
852
548
484
2,785
1,212
Provision (benefit) for unfunded commitments
(24
)
35
(306
)
(79
)
(1,094
)
Net interest income after provision (benefit) for credit losses
39,503
35,937
28,225
104,534
84,075
Non-Interest Income
Service charges on deposits and fees
217
239
363
635
1,387
Loan servicing fees
1,117
1,525
(289
)
3,637
5,970
MPP fees
1,457
1,355
1,538
3,952
3,823
Net gain on sale of loans
20,953
19,351
24,591
58,892
49,656
Other non-interest income
285
(32
)
(445
)
2,224
(1,527
)
Total Non-Interest Income
24,029
22,438
25,758
69,340
59,309
Non-Interest Expense
Salaries and benefits
24,336
22,234
20,779
67,012
58,817
Occupancy and equipment
811
918
1,014
2,701
3,456
Data processing expense
2,190
2,155
2,207
6,451
7,047
Professional fees
1,701
1,793
1,140
4,722
3,341
Other taxes and insurance
1,998
1,190
1,602
4,974
4,894
Other non-interest expense
3,322
3,432
2,628
9,590
7,599
Total Non-Interest Expense
34,358
31,722
29,370
95,450
85,154
Income before income taxes
29,174
26,653
24,613
78,424
58,230
Income tax expense
7,001
6,309
5,913
18,658
14,061
Net Income
$
22,173
$
20,344
$
18,700
$
59,766
$
44,169
Preferred stock dividends
2,041
2,296
1,601
6,544
5,853
Net Income Available To Common Stockholders
$
20,132
$
18,048
$
17,099
$
53,222
$
38,316
Basic Earnings Per Share
$
0.58
$
0.52
$
0.67
$
1.61
$
1.49
Diluted Earnings Per Share
$
0.57
$
0.51
$
0.67
$
1.58
$
1.49
Weighted Average Shares Outstanding
34,602,289
34,574,086
25,689,560
33,006,655
25,689,560
Diluted Weighted Average Shares Outstanding
35,337,136
35,218,962
25,756,431
33,668,316
25,756,431
NORTHPOINTE BANCSHARES, INC.
(unaudited, dollars in thousands except per share data)
Consolidated Balance Sheets
Sept 30,
2025
June 30,
2025
Sept 30,
2024
Assets
Cash and cash equivalents
$
419,162
$
415,659
$
440,751
Equity securities
1,342
1,329
1,346
Debt securities available for sale
4,752
8,785
8,411
FHLB stock
80,109
69,574
69,574
Loans held for sale, at fair value
259,835
331,199
345,024
Loans (1)
5,967,235
5,496,806
4,412,061
Allowance for credit losses
(12,250
)
(12,375
)
(12,220
)
Net loans
5,954,985
5,484,431
4,399,841
Mortgage servicing rights
16,763
16,388
11,671
Intangible assets, net
1,660
1,806
3,811
Premises and equipment
27,658
27,479
27,877
Other assets
73,314
74,244
77,693
Total Assets
$
6,839,580
$
6,430,894
$
5,385,999
Liabilities
Non-interest-bearing
$
235,733
$
201,449
$
221,928
Interest-bearing
4,533,904
4,272,622
3,309,950
Total Deposits
4,769,637
4,474,071
3,531,878
Borrowings
1,369,034
1,274,929
1,308,750
Subordinated debentures
24,203
24,181
38,897
Subordinated debentures issued through trusts
5,000
5,000
5,000
Deferred tax liability
2,651
3,141
4,539
Other liabilities
45,530
45,295
42,153
Total Liabilities
6,216,055
5,826,617
4,931,217
Stockholders’ Equity
Preferred stock, Common stock and Additional paid in capital
276,885
276,885
167,462
Retained earnings
346,829
327,556
287,765
Accumulated other comprehensive loss
(189
)
(164
)
(445
)
Total Stockholders’ Equity
623,525
604,277
454,782
Total Liabilities and Stockholders’ Equity
$
6,839,580
$
6,430,894
$
5,385,999
(1) Includes $179.4 million, $175.1 million and $175.5 million of loans carried at fair value at September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
NORTHPOINTE BANCSHARES, INC.
(unaudited, dollars in thousands except per share data)
Selected Financial Highlights
Three Months Ended
Nine Months Ended
Sept 30,
2025
June 30,
2025
Sept 30,
2024
Sept 30,
2025
Sept 30,
2024
PER COMMON SHARE
Diluted earnings per share
$
0.57
$
0.51
$
0.67
$
1.58
$
1.49
Book value
$
18.14
$
17.58
$
17.70
$
18.14
$
17.70
Tangible book value (1)
$
15.23
$
14.67
$
13.56
$
15.23
$
13.56
PERFORMANCE RATIOS
Return on average assets (annualized)
1.34
%
1.34
%
1.41
%
1.33
%
1.17
%
Return on average equity (annualized)
14.23
%
13.60
%
16.32
%
13.70
%
13.20
%
Return on average tangible common equity (annualized) (1)
15.41
%
14.49
%
19.56
%
14.77
%
15.44
%
Net interest margin
2.47
%
2.44
%
2.20
%
2.43
%
2.30
%
Efficiency ratio (2)
53.38
%
53.80
%
54.23
%
54.05
%
59.34
%
ASSET QUALITY AND RATIOS
Allowance for credit losses to loans held for investment (“HFI”)
0.21
%
0.23
%
0.28
%
0.21
%
0.28
%
Allowance for credit losses to loans HFI (excluding fair value loans)
0.21
%
0.24
%
0.29
%
0.21
%
0.29
%
Allowance for credit losses to non-accrual loans
15.82
%
15.10
%
17.28
%
15.82
%
17.28
%
Allowance for credit losses to non-accrual loans (excluding guaranteed) (3)
24.08
%
22.75
%
36.32
%
24.08
%
36.32
%
Net charge-offs
$
977
$
488
$
554
$
1,728
$
1,286
Annualized net charge-offs to average loans
0.07
%
0.04
%
0.05
%
0.03
%
0.04
%
Non-performing assets to total assets
1.25
%
1.35
%
1.52
%
1.25
%
1.52
%
Non-performing assets to total assets (excluding guaranteed) (3)
0.85
%
0.91
%
0.84
%
0.85
%
0.84
%
Non-performing loans to total gross loans
1.35
%
1.49
%
1.68
%
1.35
%
1.68
%
Non-performing loans to total gross loans (excluding guaranteed) (3)
0.91
%
1.01
%
0.90
%
0.91
%
0.90
%
SELECTED OTHER INFORMATION
Equity / assets
9.12
%
9.40
%
8.44
%
9.12
%
8.44
%
Tangible common equity / tangible assets (1)
7.66
%
7.84
%
6.47
%
7.66
%
6.47
%
Loans / deposits (4)
125.11
%
122.86
%
124.92
%
125.11
%
124.92
%
Liquidity ratio (5)
6.13
%
6.46
%
8.18
%
6.13
%
8.18
%
Wholesale funding ratio (6)
67.58
%
70.71
%
74.00
%
67.58
%
74.00
%
SELECTED MORTGAGE DATA
Residential mortgage originations
$
636,600
$
665,515
$
583,471
$
1,787,620
$
1,557,955
Residential mortgage interest rate lock commitments
$
823,261
$
753,317
$
797,052
$
2,306,015
$
2,107,284
Residential mortgage applications
$
1,113,569
$
1,096,299
$
1,157,023
$
3,283,606
$
2,010,634
MPP total loans funded
$
9,822,322
$
9,009,750
$
6,559,838
$
25,576,189
$
17,380,555
Total loans serviced for others (UPB) (7)
$
4,542,688
$
4,019,138
$
4,082,232
$
4,542,688
$
4,082,232
Loans serviced for others (UPB)
$
1,754,235
$
1,596,367
$
1,169,711
$
1,754,235
$
1,169,711
Loans sub-serviced for others (UPB)
$
2,788,453
$
2,422,771
$
2,912,521
$
2,788,453
$
2,912,521
(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/deposit ratio reflects loans held for investments 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 held for investment and loans held for sale.
Summary Average Balance Sheet
(Dollars in thousands)
Three Months Ended
Three Months Ended
Three Months Ended
September 30, 2025
June 30, 2025
September 30, 2024
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)
$
5,835,496
$
94,044
6.39
%
$
5,462,596
$
86,260
6.33
%
$
4,581,283
$
75,033
6.52
%
Securities, AFS (3)
7,116
87
4.85
%
9,916
158
6.39
%
9,514
157
6.56
%
Securities, FHLB Stock
78,621
1,605
8.10
%
69,574
1,553
8.95
%
69,574
1,641
9.38
%
Interest bearing deposits
549,657
6,100
4.40
%
463,199
5,122
4.44
%
482,059
6,520
5.38
%
Total Interest Earning Assets
6,470,890
101,836
6.24
%
6,005,285
93,093
6.22
%
5,142,430
83,351
6.45
%
Noninterest Earning Assets (4)
103,976
105,120
115,250
Total Assets
$
6,574,866
$
6,110,405
$
5,257,680
Liabilities
Deposits:
Transaction accounts
$
1,009,709
$
11,246
4.42
%
$
765,245
$
8,394
4.40
%
$
386,912
$
4,744
4.88
%
Money Market & Savings
325,660
3,143
3.83
%
326,396
3,114
3.83
%
373,262
4,194
4.47
%
Time
3,063,371
33,780
4.37
%
2,903,158
32,074
4.43
%
2,411,450
31,999
5.28
%
Total interest-bearing deposits
4,398,740
48,169
4.34
%
3,994,799
43,582
4.38
%
3,171,624
40,937
5.13
%
Sub Debt
29,189
679
9.23
%
29,166
678
9.32
%
43,485
1,271
11.63
%
Borrowings
1,245,949
12,657
4.03
%
1,249,314
12,313
3.95
%
1,309,177
12,740
3.87
%
Total interest-bearing liabilities
5,673,878
61,505
4.30
%
5,273,279
56,573
4.30
%
4,524,286
54,948
4.83
%
Noninterest-bearing deposits
234,252
195,275
220,747
Other noninterest-bearing liabilities
48,425
41,998
56,819
Total noninterest-bearing liabilities
282,677
237,273
277,566
Equity
618,311
599,853
455,828
$
6,574,866
$
6,110,405
$
5,257,680
Net Interest Income
$
40,331
$
36,520
$
28,403
Net Interest Spread (5)
1.94
%
1.91
%
1.62
%
Net Interest Margin (6)
2.47
%
2.44
%
2.20
%
(1)
Loan balance includes loans held for investment and held for sale. 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 $45,000, $30,000, and $83,000 for the quarters ended September 30, 2025, June 30, 2025 and September 30, 2024, 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, 2025
September 30, 2024
Average
Principal
Balance
Income/
Expense
Yield/
Rate
Average
Principal
Balance
Income/
Expense
Yield/
Rate
Assets
Loans (1)(2)
$
5,327,769
$
252,376
6.33
%
$
4,347,308
$
210,660
6.47
%
Securities, AFS (3)
8,970
399
5.95
%
9,884
477
6.45
%
Securities, FHLB Stock
72,623
4,786
8.81
%
69,132
4,751
9.18
%
Interest bearing deposits
500,241
16,518
4.41
%
466,277
18,943
5.43
%
Total Interest Earning Assets
5,909,603
274,079
6.20
%
4,892,601
234,831
6.41
%
Noninterest Earning Assets (4)
105,949
149,263
Total Assets
$
6,015,552
$
5,041,864
Liabilities
Deposits:
Transaction accounts
$
839,210
$
27,630
4.40
%
$
395,765
$
14,639
4.94
%
Money Market & Savings
329,685
9,506
3.86
%
395,580
13,152
4.44
%
Time
2,743,269
90,925
4.43
%
2,131,676
84,177
5.27
%
Total interest-bearing deposits
3,912,164
128,061
4.38
%
2,923,021
111,968
5.12
%
Sub Debt
29,166
2,244
10.29
%
40,767
2,855
9.35
%
Borrowings
1,235,247
36,534
3.95
%
1,321,471
35,815
3.62
%
Total interest-bearing liabilities
5,176,577
166,839
4.31
%
4,285,259
150,638
4.70
%
Noninterest-bearing deposits
214,521
251,850
Other noninterest-bearing liabilities
41,027
57,697
Total noninterest-bearing liabilities
255,548
309,547
Equity
583,427
447,058
Total Liabilities and Equity
$
6,015,552
$
5,041,864
Net Interest Income
$
107,240
$
84,193
Net Interest Spread (5)
1.89
%
1.72
%
Net Interest Margin (6)
2.43
%
2.30
%
(1)
Loan balance includes loans held for investment and held for sale. 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 $114,000 and $216,000 for the nine months ended September 30, 2025 and 2024, 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)
September 30,
2025
June 30,
2025
September 30,
2024
Residential:
Construction
$
18,973
$
27,144
$
86,300
All-in-One (AIO)
701,580
662,829
581,728
Other Consumer/Home Equity
56,592
54,495
99,547
Residential Mortgage (1)
1,814,623
1,859,814
1,971,907
Commercial
10,581
856
750
MPP
3,364,886
2,891,668
1,671,829
Total Loans Held for Investment (HFI)
5,967,235
5,496,806
4,412,061
Total Loans Held for Sale (HFS)
259,835
331,199
345,024
Total Gross Loans (HFI and HFS)
$
6,227,070
$
5,828,005
$
4,757,085
(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)
September 30,
2025
June 30,
2025
September 30,
2024
Noninterest-bearing demand
$
235,733
$
201,449
$
221,928
Interest-bearing demand
1,056,372
749,479
383,517
Savings & money market
321,077
327,244
330,076
Brokered time deposits
2,779,204
2,790,399
2,273,538
Other time deposits
377,253
405,500
322,819
Total deposits
$
4,769,639
$
4,474,071
$
3,531,878
Loan Servicing Fees
Three Months Ended
Nine Months Ended
(Dollars in thousands)
Sept 30,
2025
June 30,
2025
Sept 30,
2024
Sept 30,
2025
Sept 30,
2024
Fees on servicing
$
2,027
$
1,827
$
1,584
$
5,556
$
10,565
Change in fair value of MSRs (1)
(910
)
(302
)
(1,873
)
(1,919
)
(4,595
)
Total loan servicing fees
$
1,117
$
1,525
$
(289
)
$
3,637
$
5,970
(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,
2025
June 30,
2025
Sept 30,
2024
Sept 30,
2025
Sept 30,
2024
Capitalized MSRs
$
1,285
$
902
$
643
$
3,254
$
2,736
Change in fair value of loans (1)
725
3,340
21,084
8,743
19,242
Gain (loss) on sale of portfolio loans (2)
1,234
—
(8,025
)
1,234
(8,025
)
Gain on sale of loans, net (3)
17,709
15,109
10,889
45,661
35,703
Total net gain on sale of loans
$
20,953
$
19,351
$
24,591
$
58,892
$
49,656
Total net gain on sale of loans
$
20,953
$
19,351
$
24,591
$
58,892
$
49,656
Less: change in fair value of loans HFI and LRA
(2,229
)
(1,812
)
(17,844
)
(7,739
)
(16,837
)
Less: Gain (loss) on sale of portfolio loans
(1,234
)
—
8,025
(1,234
)
8,025
Total net gain on sale of loans, excluding portfolio sales and LRA / HFI fair value adjustments
$
17,490
$
17,539
$
14,772
$
49,919
$
40,844
(1) Includes the change in fair value of interest rate locks, loans held for sale, 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 gain 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,
2025
June 30,
2025
Sept 30,
2024
Sept 30,
2025
Sept 30,
2024
Salaries and other compensation
$
9,252
$
8,737
$
8,786
$
26,596
$
26,968
Salary deferral from loan origination
(1,151
)
(991
)
(836
)
(3,110
)
(2,974
)
Bonus and incentive compensation
5,425
3,564
3,730
12,631
7,688
Mortgage production – variable compensation
7,578
7,730
6,632
21,365
19,119
Employee benefits
3,232
3,194
2,467
9,530
8,016
Total salaries and employee benefits
$
24,336
$
22,234
$
20,779
$
67,012
$
58,817
Non-performing Assets
(Dollars in thousands)
Sept 30,
2025
June 30,
2025
Sept 30,
2025
Unguaranteed
$
50,870
$
54,402
$
33,641
Wholly or partially guaranteed
26,568
27,577
37,064
Total non-accrual loans
$
77,438
$
81,979
$
70,705
Unguaranteed
$
5,522
$
3,938
$
9,041
Wholly or partially guaranteed
941
974
171
Total past due loans (90 days or more and still accruing)
$
6,463
$
4,912
$
9,212
Unguaranteed
$
56,392
$
58,340
$
42,682
Wholly or partially guaranteed
27,509
28,551
37,235
Total non-performing loans
$
83,901
$
86,891
$
79,917
Other real estate
$
1,339
$
203
$
1,990
Total non-performing assets
$
85,240
$
87,094
$
81,907
Total non-performing assets (excluding wholly or partially guaranteed)
$
57,731
$
58,543
$
44,672
Loans past due 31-89 days
$
43,016
$
44,626
$
32,795
Ratios:
Non-accrual loans to total gross loans
1.24
%
1.41
%
1.49
%
Non-performing loans to total gross loans
1.35
%
1.49
%
1.68
%
Non-performing assets to total assets
1.25
%
1.35
%
1.52
%
Ratios excluding loans wholly or partially guaranteed:
Non-accrual loans to total gross loans
0.82
%
0.93
%
0.71
%
Non-performing loans to total gross loans
0.91
%
1.01
%
0.90
%
Non-performing assets to total assets
0.85
%
0.91
%
0.84
%
Regulatory Capital Ratios (1)
Sept 30, 2025
Ratio
June 30, 2025
Ratio
Sept 30, 2024
Ratio
Total Capital (to Risk Weighted Assets)
Consolidated
11.32
%
11.80
%
11.36
%
Bank
11.14
%
11.34
%
11.22
%
Tier 1 (Core) Capital (to Risk Weighted Assets)
Consolidated
10.72
%
11.15
%
10.37
%
Bank
10.96
%
11.15
%
10.78
%
CET 1 Capital Ratio (to Risk Weighted Assets)
Consolidated
8.96
%
9.25
%
7.93
%
Bank
10.96
%
11.15
%
10.78
%
Tier 1 Capital (to Average Assets)
Consolidated
9.57
%
9.98
%
8.77
%
Bank
9.79
%
9.98
%
9.11
%
(1) The regulatory capital ratios as of September 30, 2025 are estimates, pending completion and filing of the Bank’s regulatory reports.
Non-GAAP Financial Measures
This earnings release contains certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. The measures entitled tangible common equity, tangible book value, tangible assets, tangible common equity to tangible assets and return on average tangible common equity are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are stockholders’ equity, book value per share, total assets, equity to assets and return on average equity, respectively.
The Company believes that non-GAAP financial measures provide useful information to management and investors that is supplementary to its financial condition, results of operations and cash flows computed in accordance with GAAP; however the Company acknowledges that the non-GAAP financial measures have inherent limitations. As such, these disclosures should not be viewed as a substitute for results determined in accordance with GAAP, and these disclosures are not necessarily comparable to non-GAAP financial measures that other companies use.
The Company calculates tangible common equity as stockholders’ equity less goodwill and intangible assets (net of deferred tax liability (“DTL”) and preferred stock. The Company calculates tangible book value (“TBV”) per share as tangible common equity divided by the number of shares of common stock outstanding at the end of the relevant period. The Company calculates tangible assets as total assets less intangible assets (net of DTL). The Company calculates tangible common equity/tangible assets as tangible common equity divided by tangible assets. The Company calculates return on average tangible common equity as annualized net income available to common stockholders divided by average tangible equity. The most directly comparable GAAP financial measures are outlined in the non-GAAP reconciliation table below.
Non-GAAP Measures Reconciliation
As of or for the Three Months Ended
As of or for the Nine Months Ended
(Dollars in thousands)
Sept 30,
2025
June 30,
2025
Sept 30,
2024
Sept 30,
2025
Sept 30,
2024
Stockholders’ equity (GAAP)
$
623,525
$
604,277
$
454,782
$
623,525
$
454,782
Less: Preferred stock
98,734
98,734
103,573
98,734
103,573
Less: Intangible assets, net of DTL
1,267
1,379
2,909
1,267
2,909
Tangible common equity
523,524
504,164
348,300
523,524
348,300
Common shares at end of period
34,364,659
34,364,659
25,689,560
34,364,659
25,689,560
Tangible book value per share
$
15.23
$
14.67
$
13.56
$
15.23
$
13.56
Book value per share (GAAP)
$
18.14
$
17.58
$
17.70
$
18.14
$
17.70
Total assets (GAAP)
$
6,839,580
$
6,430,894
$
5,385,999
$
6,839,580
$
5,385,999
Less: Intangible assets, net of DTL
1,267
1,379
2,909
1,267
2,909
Tangible assets
$
6,838,313
$
6,429,515
$
5,383,090
$
6,838,313
$
5,383,090
Tangible common equity/tangible assets
7.66
%
7.84
%
6.47
%
7.66
%
6.47
%
Equity to assets (GAAP)
9.12
%
9.40
%
8.44
%
9.12
%
8.44
%
Net income
$
22,173
$
20,344
$
18,700
$
59,766
$
44,169
Less: Preferred stock dividends
2,041
2,296
1,601
6,544
5,853
Net income available to common stockholders
20,132
18,048
17,099
53,222
38,316
Annualized net income available to common stockholders
79,872
72,390
67,293
71,158
51,181
Average tangible common equity
518,238
499,667
343,981
481,665
331,531
Return on average tangible common equity
15.41
%
14.49
%
19.56
%
14.77
%
15.44
%
Annualized net income
87,969
81,600
73,594
79,907
58,999
Average equity
618,312
599,853
455,828
583,427
447,058
Return on average equity (GAAP)
14.23
%
13.60
%
16.15
%
13.70
%
13.20
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20251021803350/en/
Kevin Comps | President | 616-974-8491 | kevin.comps@northpointe.com
Brad Howes | CFO | 616-726-2585 | brad.howes@northpointe.com
Source: Northpointe Bancshares, Inc.