Northpointe Bancshares Q2 Earnings: $0.60 Per Share

Key Terms

net interest margin

financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

sofr

financial

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

mortgage servicing rights

financial

Mortgage servicing rights are the contractual right to collect mortgage payments, manage escrow accounts, handle customer service and delinquency actions on a pool of home loans, in exchange for a portion of the loan’s payments. They matter to investors because their value behaves like a revenue stream that can rise or fall with interest rates and borrower behavior — similar to owning a toll bridge where income depends on traffic volume and maintenance costs — and thus affect a lender’s earnings and risk profile.

net charge-offs

financial

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

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07/21/2026 – 05:00 PM

GRAND RAPIDS, Mich.–(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:

Return on average equity of 14.36%, compared to 15.32% in the prior quarter.

Return on average tangible common equity of 14.69%, compared to 15.71% in the prior quarter (see non-GAAP reconciliation).

Return on average assets of 1.18%, compared to 1.28% in the prior quarter.

Efficiency ratio of 54.76%, compared to 54.30% in the prior quarter.

Continued growth in the balance sheet, including:

Mortgage Purchase Program (“MPP”) balances increased by $77.3 million, or 8% annualized, from the prior quarter. This is net of $489.0 million in balances participated to other institutions at period end, which compares to $412.7 million in the prior quarter.

First-lien home equity lines which are tied seamlessly to a demand deposit sweep account (the Company commonly refers to these loans as “All-in-One” or “AIO” loans) balances increased by $36.7 million, or 19% annualized.

Total deposits increased by $231.9 million, or 19% annualized, primarily driven by higher brokered CDs.

Asset quality remained stable:

Non-performing assets decreased by $4.0 million from the prior quarter.

Net charge-offs remained historically low at $528,000, or 0.03% of average loans (annualized).

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.

NORTHPOINTE BANCSHARES, INC.

(unaudited, dollars in thousands except per share data)

Consolidated Statements of Income

Three Months Ended

Six Months Ended

June 30,

2026

Mar 31,

2026

June 30,

2025

June 30,

2026

June 30,

2025

Interest income

Loans – including fees

100,126

94,913

86,260

195,040

158,332

Investment securities – taxable

158

117

312

Federal Home Loan Bank (“FHLB”) stock – taxable

1,780

1,745

1,553

3,526

3,181

Interest bearing deposits

5,071

4,788

5,122

9,859

10,418

Total interest income

107,038

101,503

93,093

208,542

172,243

Interest expense

Deposits

47,715

44,455

43,582

92,169

79,893

Subordinated debentures

2,519

2,102

678

4,621

1,564

Borrowings

14,382

13,673

12,313

28,055

23,877

Total interest expense

64,616

60,230

56,573

124,845

105,334

Net interest income

42,422

41,273

36,520

83,697

66,909

Provision (benefit) for credit losses

264

(469

)

548

(205

)

1,932

Provision (benefit) for unfunded commitments

(54

)

(30

)

(55

)

Net interest income after provision (benefit) for credit losses and unfunded commitments

42,212

41,718

35,937

83,932

65,032

Non-Interest Income

Service charges on deposits and fees

315

264

239

579

419

Loan servicing fees

2,268

3,548

1,525

5,816

2,520

MPP fees

2,306

1,970

1,355

4,276

2,496

Net gain on sale of loans

17,046

16,547

19,351

33,592

37,938

Other non-interest income (loss)

(41

)

(184

)

(32

)

(224

)

1,939

Total Non-Interest Income

21,894

22,145

22,438

44,039

45,312

Non-Interest Expense

Salaries and benefits

25,026

24,353

22,234

49,379

42,677

Occupancy and equipment

744

820

918

1,565

1,890

Data processing expense

2,521

2,349

2,155

4,870

4,262

Professional fees

1,362

1,318

1,793

2,680

3,021

Other taxes and insurance

1,987

2,237

1,190

4,224

2,977

Other non-interest expense

3,579

3,358

3,432

6,937

6,267

Total Non-Interest Expense

35,219

34,435

31,722

69,655

61,094

Income before income taxes

28,887

29,428

26,653

58,316

49,250

Income tax expense

7,141

7,274

6,309

14,415

11,658

Net Income

21,746

22,154

20,344

43,901

37,592

Preferred stock dividends

453

2,296

906

4,503

Net Income Available To Common Stockholders

21,293

21,701

18,048

42,995

33,089

Basic Earnings Per Share

0.61

0.63

0.52

1.24

1.03

Diluted Earnings Per Share

0.60

0.62

0.51

1.22

1.01

Weighted Average Shares Outstanding

34,740,412

34,702,246

34,574,086

34,721,434

32,208,838

Diluted Weighted Average Shares Outstanding

35,416,828

35,260,806

35,218,962

35,339,248

32,833,905

NORTHPOINTE BANCSHARES, INC.

(unaudited, dollars in thousands except per share data)

Consolidated Balance Sheets

June 30,

2026

Mar 31,

2026

June 30,

2025

Assets

Cash and cash equivalents

538,359

487,617

415,659

Equity securities

1,333

1,339

1,329

Debt securities available for sale

4,880

4,884

8,785

FHLB stock

76,099

80,109

69,574

Loans held for sale (“HFS”), at fair value

311,991

297,243

331,199

Loans held for investment (“HFI”) (1)

6,480,158

6,411,197

5,496,806

Allowance for credit losses

(9,436

)

(9,700

)

(12,375

)

Net loans

6,470,722

6,401,497

5,484,431

Mortgage servicing rights

23,088

20,608

16,388

Intangible assets, net

1,220

1,367

1,806

Premises and equipment

26,970

27,394

27,479

Other assets

75,289

73,819

74,244

Total Assets

7,529,951

7,395,877

6,430,894

Liabilities

Non-interest-bearing

261,524

277,239

201,449

Interest-bearing

4,971,791

4,724,178

4,272,622

Total Deposits

5,233,315

5,001,417

4,474,071

Borrowings

1,512,500

1,631,496

1,274,929

Subordinated debentures

111,955

111,872

24,181

Subordinated debentures issued through trusts

5,000

Deferred tax liability

4,637

4,110

3,141

Other liabilities

50,896

51,989

45,295

Total Liabilities

6,918,303

6,805,884

5,826,617

Stockholders’ Equity

Preferred stock, common stock and additional paid in capital

206,104

204,875

276,885

Retained earnings

405,634

385,206

327,556

Accumulated other comprehensive loss

(90

)

(88

)

(164

)

Total Stockholders’ Equity

611,648

589,993

604,277

Total Liabilities and Stockholders’ Equity

7,529,951

7,395,877

6,430,894

(1) Includes $165.6 million, $173.9 million and $175.1 million of loans carried at fair value at June 30, 2026, March 31, 2026 and June 30, 2025, respectively.

NORTHPOINTE BANCSHARES, INC.

(unaudited, dollars in thousands except per share data)

Selected Financial Highlights

Three Months Ended

Six Months Ended

June 30,

2026

Mar 31,

2026

June 30,

2025

June 30,

2026

June 30,

2025

PER COMMON SHARE

Diluted earnings per share

0.60

0.62

0.51

1.22

1.01

Book value

17.69

17.10

17.58

17.69

17.58

Tangible book value (1)

16.94

16.35

14.67

16.94

14.67

PERFORMANCE RATIOS

Return on average assets (annualized)

1.18

1.28

1.34

1.23

1.32

Return on average equity (annualized)

14.36

15.32

13.60

14.83

13.40

Return on average tangible common equity (annualized) (1)

14.69

15.71

14.49

15.19

14.41

Net interest margin

2.33

2.42

2.44

2.37

2.40

Efficiency ratio (2)

54.76

54.30

53.80

54.53

54.44

ASSET QUALITY AND RATIOS

Allowance for credit losses to loans HFI

0.15

0.23

0.15

0.23

Allowance for credit losses to loans HFI (excluding fair value loans)

0.15

0.16

0.23

0.15

0.23

Allowance for credit losses to non-accrual loans

11.80

12.07

15.10

11.80

15.10

Allowance for credit losses to non-accrual loans (excluding guaranteed) (3)

17.19

17.67

22.75

17.19

22.75

Net charge-offs

528

266

488

794

747

Annualized net charge-offs to average loans

0.03

0.02

0.04

0.02

0.03

Non-performing assets to total assets

1.15

1.23

1.35

1.15

1.35

Non-performing assets to total assets (excluding guaranteed) (3)

0.80

0.86

0.91

0.80

0.91

Non-performing loans to total gross loans

1.23

1.30

1.49

1.23

1.49

Non-performing loans to total gross loans (excluding guaranteed) (3)

0.84

0.90

1.01

0.84

1.01

SELECTED OTHER INFORMATION

Equity / assets

8.12

7.98

9.40

8.12

9.40

Tangible common equity / tangible assets (1)

7.78

7.63

7.84

7.78

7.84

Loans / deposits (4)

123.83

128.19

122.86

123.83

122.86

Liquidity ratio (5)

7.15

6.59

6.46

7.15

6.46

Wholesale funding ratio (6)

63.09

62.94

70.71

63.09

70.71

SELECTED MORTGAGE DATA

Residential mortgage originations

670,607

693,674

665,515

1,364,281

1,151,020

Residential mortgage interest rate lock commitments

719,118

901,682

753,317

1,620,800

1,482,753

Residential mortgage applications

1,006,895

1,073,628

1,096,299

2,080,523

2,170,036

MPP total loans funded

12,806,011

11,163,102

9,009,750

23,969,113

15,753,867

MPP balances participated (period end)

489,009

412,693

8,644

489,009

8,644

Total loans serviced for others (UPB) (7)

5,498,627

5,231,083

4,019,138

5,498,627

4,019,138

Loans serviced for others (UPB)

2,031,256

1,948,505

1,596,367

2,031,256

1,596,367

Loans sub-serviced for others (UPB)

3,467,371

3,282,578

2,422,771

3,467,371

2,422,771

(1)

See non-GAAP reconciliation.

(2)

Efficiency ratio is defined as non-interest expense divided by the sum of net interest income and non-interest income.

(3)

Ratio excludes non-performing loans wholly or partially insured by the U.S. Government (see non-performing asset table within for more detail).

(4)

Loan / deposits ratio reflects loans HFI as a percentage of total deposits.

(5)

Liquidity ratio defined as cash and cash equivalents divided by total assets.

(6)

Wholesale funding ratio defined as brokered CDs plus borrowings divided by total deposits plus borrowings.

(7)

Excludes UPB of loans HFI and loans HFS.

Summary Average Balance Sheet

(Dollars in thousands)

Three Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

Average Principal Balance

Income/ Expense

Yield/ Rate

Average Principal Balance

Income/ Expense

Yield/ Rate

Average Principal Balance

Income/ Expense

Yield/ Rate

Assets

Loans (1)(2)

6,664,882

100,126

6.03

6,297,404

94,913

6.11

5,462,596

86,261

6.33

Securities, AFS (3)

6,120

4.00

6,199

3.73

9,916

157

6.35

Securities, FHLB Stock

76,461

1,780

9.34

80,109

1,745

8.83

69,574

1,553

8.95

Interest bearing deposits

553,686

5,071

3.67

527,962

4,788

3.68

463,199

5,122

4.44

Total Interest Earning Assets

7,301,149

107,038

5.88

6,911,674

101,503

5.96

6,005,285

93,093

6.22

Noninterest Earning Assets (4)

115,708

110,236

105,120

Total Assets

7,416,857

7,021,910

6,110,405

Liabilities

Deposits:

Transaction accounts

1,254,772

12,446

3.98

1,121,322

10,912

3.95

765,245

8,394

4.40

Savings & money market

491,371

4,187

3.42

534,564

4,614

3.50

326,396

3,114

3.83

Time

3,136,971

31,082

3.97

2,939,195

28,929

3.99

2,903,158

32,074

4.43

Total interest-bearing deposits

4,883,114

47,715

3.92

4,595,081

44,455

3.92

3,994,799

43,582

4.38

Sub Debt

116,905

2,519

8.64

101,378

2,102

8.41

29,166

678

9.32

Borrowings

1,455,723

14,382

3.96

1,401,300

13,673

3.96

1,249,314

12,313

3.95

Total interest-bearing liabilities

6,455,742

64,616

4.01

6,097,759

60,230

4.01

5,273,279

56,573

4.30

Noninterest-bearing deposits

301,940

292,437

195,275

Other noninterest-bearing liabilities

51,939

45,273

41,998

Total noninterest-bearing liabilities

353,879

337,710

237,273

Equity

607,236

586,441

599,853

7,416,857

7,021,910

6,110,405

Net Interest Income

42,422

41,273

36,520

Net Interest Spread (5)

1.87

1.95

1.91

Net Interest Margin (6)

2.33

2.42

2.44

(1)

Loan balance includes loans HFI and loans HFS. Nonaccrual loans are included in total loan balances and no adjustment has been made for these loans in the yield calculation. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.

(2)

Loan fees of $51,000, $74,000, and $30,000 for the quarters ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively, are included in interest income.

(3)

Average yield based on carrying value and there are no tax-exempt securities in the portfolio.

(4)

Noninterest-earning assets includes the allowance for credit losses.

(5)

Net interest spread is the average yield on total interest-earning assets minus the average rate on total interest-bearing liabilities.

(6)

Net interest margin is annualized net interest income divided by total average interest-earning assets.

Summary Average Balance Sheet

(Dollars in thousands)

Six Months Ended

June 30, 2026

June 30, 2025

Average Principal Balance

Income/ Expense

Yield/ Rate

Average Principal Balance

Income/ Expense

Yield/ Rate

Assets

Loans (1)(2)

6,482,158

195,040

6.07

5,069,698

158,332

6.30

Securities, AFS (3)

6,159

117

3.83

9,913

312

6.35

Securities, FHLB Stock

78,275

3,526

9.08

69,574

3,181

9.22

Interest bearing deposits

540,895

9,859

3.68

475,123

10,418

4.42

Total Interest Earning Assets

7,107,487

208,542

5.92

5,624,308

172,243

6.18

Noninterest Earning Assets (4)

112,988

106,952

Total Assets

7,220,475

5,731,260

Liabilities

Deposits:

Transaction accounts

1,188,416

23,357

3.96

752,548

16,385

4.39

Savings & money market

512,848

8,801

3.46

331,730

6,363

3.87

Time

3,038,629

60,011

3.98

2,580,565

57,145

4.47

Total interest-bearing deposits

4,739,893

92,169

3.92

3,664,843

79,893

4.40

Sub Debt

109,184

4,621

8.53

29,154

1,564

10.82

Borrowings

1,428,756

28,055

3.96

1,229,809

23,877

3.92

Total interest-bearing liabilities

6,277,833

124,845

4.01

4,923,806

105,334

4.31

Noninterest-bearing deposits

297,216

203,177

Other noninterest-bearing liabilities

48,530

38,581

Total noninterest-bearing liabilities

345,746

241,758

Equity

596,896

565,696

Total Liabilities and Equity

7,220,475

5,731,260

Net Interest Income

83,697

66,909

Net Interest Spread (5)

1.91

1.86

Net Interest Margin (6)

2.37

2.40

(1)

(2)

Loan fees of $110,000 and $70,000 for the six months ended June 30, 2026 and 2025, respectively, are included in interest income.

(3)

Average yield based on carrying value and there are no tax-exempt securities in the portfolio.

(4)

Noninterest-earning assets includes the allowance for credit losses.

(5)

Net interest spread is the average yield on total interest-earning assets minus the average rate on total interest-bearing liabilities.

(6)

Net interest margin is annualized net interest income divided by total average interest-earning assets.

End of Period Loan Balances

(Dollars in thousands)

June 30,

2026

Mar 31,

2026

June 30,

2025

Residential:

Construction

8,271

11,008

27,144

All-in-One (AIO)

797,232

760,550

662,829

Other Consumer/Home Equity

48,127

50,208

54,495

Residential Mortgage (1)

1,668,169

1,728,291

1,859,814

Commercial

20,438

477

856

MPP

3,937,921

3,860,663

2,891,668

Total Loans HFI

6,480,158

6,411,197

5,496,806

Total Loans HFS

311,991

297,243

331,199

Total Gross Loans (HFI and HFS)

6,792,149

6,708,440

5,828,005

(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)

June 30,

2026

Mar 31,

2026

June 30,

2025

Noninterest-bearing demand

261,524

277,239

201,449

Interest-bearing demand

1,359,670

1,299,693

749,479

Savings & money market

473,955

510,807

327,244

Brokered time deposits

2,743,529

2,543,511

2,790,399

Other time deposits

394,637

370,167

405,500

Total deposits

5,233,315

5,001,417

4,474,071

Loan Servicing Fees

Three Months Ended

Six Months Ended

(Dollars in thousands)

June 30,

2026

Mar 31,

2026

June 30,

2025

June 30,

2026

June 30,

2025

Fees on servicing

2,388

2,226

1,827

4,614

3,529

Change in fair value of MSRs (1)

(120

)

1,322

(302

)

1,202

(1,009

)

Total loan servicing fees

2,268

3,548

1,525

5,816

2,520

(1) Includes change in fair value and paid in full MSRs.

Net Gain on Sale of Loans

Three Months Ended

Six Months Ended

(Dollars in thousands)

June 30,

2026

Mar 31,

2026

June 30,

2025

June 30,

2026

June 30,

2025

Capitalized MSRs

2,750

2,238

902

4,988

1,968

Change in fair value of loans (1)

2,706

(3,524

)

3,340

(818

)

8,018

Gain/loss on sale of portfolio loans (2)

—

Gain on sale of loans, net (3)

11,590

17,833

15,109

29,422

27,952

Total net gain on sale of loans

17,046

16,547

19,351

33,592

37,938

Total net gain on sale of loans

17,046

16,547

19,351

33,592

37,938

Exclude: (increases) decreases in fair value of loans HFI and LRA

(657

)

1,221

(1,812

)

564

(5,509

)

Exclude: Gain/loss on sale of portfolio loans

—

Total net gain on sale of loans, excluding portfolio sales and LRA / HFI fair value adjustments

16,389

17,768

17,539

34,156

32,429

(1) Includes the change in fair value of interest rate locks, loans HFS, and loans HFI.

(2) Includes proceeds from portfolio loans sales, which are netted against any associated changes in fair value of loans to determine total gain or loss on sale.

(3) Includes (a) net premium on sale of loans, (b) loan origination fees, points and costs, (c) provision from investor reserves, (d) gain or loss from forward commitments from hedging, and (e) fair value of LRA.

Salaries and employee benefits

Three Months Ended

Six Months Ended

(Dollars in thousands)

June 30,

2026

Mar 31,

2026

June 30,

2025

June 30,

2026

June 30,

2025

Salaries and other compensation

8,827

8,572

7,679

17,399

15,667

Salary deferral from loan origination

(1,203

)

(1,061

)

(991

)

(2,264

)

(1,959

)

Bonus and incentive compensation

4,274

4,600

3,564

8,874

7,206

MPP – variable compensation

1,536

1,489

1,058

3,025

1,676

Mortgage production – variable compensation

8,259

7,041

7,730

15,300

13,788

Employee benefits

3,333

3,712

3,194

7,045

6,299

Total salaries and employee benefits

25,026

24,353

22,234

49,379

42,677

Non-performing Assets

(Dollars in thousands)

June 30,

2026

Mar 31,

2026

June 30,

2025

Unguaranteed

54,888

54,902

54,402

Wholly or partially guaranteed

25,073

25,460

27,577

Total non-accrual loans

79,961

80,362

81,979

Unguaranteed

2,132

5,146

3,938

Wholly or partially guaranteed

1,598

1,852

974

Total past due loans (90 days or more and still accruing)

3,730

6,998

4,912

Unguaranteed

57,020

60,048

58,340

Wholly or partially guaranteed

26,671

27,312

28,551

Total non-performing loans

83,691

87,360

86,891

Other real estate owned

2,980

3,355

203

Total non-performing assets

86,671

90,715

87,094

Total non-performing assets (excl wholly or partially guaranteed)

60,000

63,403

58,543

Loans past due 31-89 days

40,066

34,639

44,626

Ratios:

Non-accrual loans to total gross loans

1.18

1.20

1.41

Non-performing loans to total gross loans

1.23

1.30

1.49

Non-performing assets to total assets

1.15

1.23

1.35

Ratios excluding loans wholly or partially guaranteed:

Non-accrual loans to total gross loans

0.81

0.82

0.93

Non-performing loans to total gross loans

0.84

0.90

1.01

Non-performing assets to total assets

0.80

0.86

0.91

Regulatory Capital Ratios (1)

June 30,

2026

Mar 31,

2026

June 30,

2025

Total Capital (to Risk Weighted Assets)

Consolidated

11.62

11.44

11.80

Bank

11.26

11.05

11.34

Tier 1 (Core) Capital (to Risk Weighted Assets)

Consolidated

9.66

9.45

11.15

Bank

11.10

10.89

11.15

CET 1 Capital Ratio (to Risk Weighted Assets)

Consolidated

9.19

8.97

9.25

Bank

11.10

10.89

11.15

Tier 1 Capital (to Average Assets)

Consolidated

8.30

8.46

9.98

Bank

9.54

9.75

9.98

(1) The regulatory capital ratios as of June 30, 2026 are estimates, pending completion and filing of the Bank’s regulatory reports.

Non-GAAP Financial Measures

This earnings release contains certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. The measures entitled tangible common equity, tangible book value, tangible assets, tangible common equity to tangible assets and return on average tangible common equity are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The most comparable GAAP measures to these measures are stockholders’ equity, book value per share, total assets, equity to assets and return on average equity, respectively.

The Company believes that non-GAAP financial measures provide useful information to management and investors that is supplementary to its financial condition, results of operations and cash flows computed in accordance with GAAP; however the Company acknowledges that the non-GAAP financial measures have inherent limitations. As such, these disclosures should not be viewed as a substitute for results determined in accordance with GAAP, and these disclosures are not necessarily comparable to non-GAAP financial measures that other companies use.

The Company calculates tangible common equity as stockholders’ equity less goodwill and intangible assets (net of deferred tax liability (“DTL”)) and preferred stock. The Company calculates tangible book value (“TBV”) per share as tangible common equity divided by the number of shares of common stock outstanding at the end of the relevant period. The Company calculates tangible assets as total assets less intangible assets (net of DTL). The Company calculates tangible common equity/tangible assets as tangible common equity divided by tangible assets. The Company calculates return on average tangible common equity as annualized net income available to common stockholders divided by average tangible equity. The most directly comparable GAAP financial measures are outlined in the non-GAAP reconciliation table below.

Non-GAAP Measures Reconciliation

As of or for the Three Months Ended

As of or for the Six

Months Ended

(Dollars in thousands)

June 30,

2026

Mar 31,

2026

June 30,

2025

June 30,

2026

June 30,

2025

Stockholders’ equity (GAAP)

611,648

589,993

604,277

611,648

604,277

Less: Preferred stock

24,979

98,734

24,979

98,734

Less: Intangible assets, net of DTL

919

1,029

1,379

919

1,379

Tangible common equity

585,750

563,985

504,164

585,750

504,164

Common shares at end of period

34,581,842

34,494,116

34,364,659

34,581,842

34,364,659

Tangible book value per share

16.94

16.35

14.67

16.94

14.67

Book value per share (GAAP)

17.69

17.10

17.58

17.69

17.58

Total assets (GAAP)

7,529,951

7,395,877

6,430,894

7,529,951

6,430,894

Less: Intangible assets, net of DTL

919

1,029

1,379

919

1,379

Tangible assets

7,529,032

7,394,848

6,429,515

7,529,032

6,429,515

Tangible common equity/tangible assets

7.78

7.63

7.84

7.78

7.84

Equity to assets (GAAP)

8.12

7.98

9.40

8.12

9.40

Net income

21,746

22,154

20,344

43,901

37,592

Less: Preferred stock dividends

453

2,296

906

4,503

Net income available to common stockholders

21,293

21,701

18,048

42,995

33,089

Annualized net income available to common stockholders

85,406

88,010

72,390

86,703

66,726

Average tangible common equity

581,266

560,361

499,667

570,863

463,075

Return on average tangible common equity

14.69

15.71

14.49

15.19

14.41

Annualized net income

87,223

89,847

81,600

88,530

75,807

Average equity

607,236

586,441

599,853

596,896

565,696

Return on average equity (GAAP)

14.36

15.32

13.60

14.83

13.40

View source version on businesswire.com: https://www.businesswire.com/news/home/20260721793462/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.

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