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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.

Release Date: July 22, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

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.

Negative Points

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 & A Highlights

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.

Story Continues

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.