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Total Assets: Increased to over $7 billion by the end of 2025.
Earnings Per Diluted Share (2025): Increased by 15% to $2.11.
Return on Average Assets (2025): 1.33%.
Return on Average Tangible Common Equity (2025): 14.43%.
Tangible Book Value Per Share: Increased by 13.9% annually.
Loan Growth: MPP balances increased by over $1.7 billion; first-lien home equity lines increased by $121 million (20% growth rate).
Noninterest Income: Increased by $18 million from 2024.
Residential Mortgage Originations (2025): Increased by 20% to $2.5 billion.
Net Income to Common Stockholders (Q4 2025): $18.4 million or $0.52 per diluted share.
Net Interest Margin (Q4 2025): 2.51%.
Net Charge-Offs (Q4 2025): $1.2 million, representing an annualized net charge-off ratio of 8 basis points.
Total Deposits (Q4 2025): $4.9 billion.
Nonperforming Assets Increase (Q4 2025): $7.4 million.
Average Yield on MPP (Q4 2025): 6.98%, increasing to 7.22% with fees.
Effective Tax Rate (Q4 2025): 26.04%.
Release Date: January 21, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Northpointe Bancshares Inc (NYSE:NPB) reported a significant growth in total assets, increasing from $5.2 billion at the end of 2024 to over $7 billion by the end of 2025.
Earnings per diluted share increased by 15% from 2024 to 2025, reaching $2.11.
The company achieved a return on average assets of 1.33% and a return on average tangible common equity of 14.43% for 2025, indicating improved profitability metrics.
Loan growth was robust, with the Mortgage Purchase Program (MPP) balances increasing by over $1.7 billion from the prior year.
Noninterest income rose by $18 million from 2024, driven by strong performance in the residential lending channel and a 20% increase in residential mortgage originations.
Net charge-offs increased to $1.2 million in the fourth quarter, up from $977,000 in the prior quarter.
Total nonperforming assets increased by $7.4 million from the prior quarter, indicating some challenges in asset quality.
The yield on average interest-earning assets decreased by 11 basis points from the prior quarter.
Noninterest income decreased by $2.4 million from the prior quarter, reflecting a decrease in gain on sale revenue.
The company’s wholesale funding ratio remained high at 64.6%, indicating a reliance on wholesale funding sources.
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Q: How have recent changes in mortgage rates impacted your 2026 guidance for salable mortgage originations and MPP loan balances? A: Brad T Howes, CFO, stated that the impact has been minimal. The company uses a blend of economic forecasts, and while there has been a recent decline in rates, a sustained decline is needed for a significant benefit to the P&L. Kevin Comps, President, added that Q1 2026 volumes should be higher than Q1 2025 due to the current rate environment.
Q: What are your assumptions for mortgage rates in 2026? A: Brad T Howes, CFO, explained that the forecast assumes rates will dip below 6% towards the end of the year, with a slow decline over the course of the year. This is based on consensus economic forecasts, and any further decline could provide upside to origination forecasts.
Q: Can you discuss the trajectory of the net interest margin throughout 2026? A: Brad T Howes, CFO, indicated that the margin is expected to see slight improvement due to a shift in loan mix towards higher-yielding MPP and AIO loans. However, two expected rate cuts in the middle of the year may offset this improvement, resulting in a consistent trajectory across the year.
Q: What is your outlook on the provision for credit losses in 2026? A: Brad T Howes, CFO, mentioned that the provision is expected to be in the $3 million to $4 million range, primarily due to nominal growth in MPP and AIO loans. The reserve level is comfortable due to the high quality and seasoned nature of the loan portfolio, with most loans originated in 2022 or earlier.
Q: Can you provide an update on your strategy for adding retail hires? A: Kevin Comps, President, stated that the company has a formalized recruiting strategy for retail loan officers and is actively working on a pipeline of new originators.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.