third quarter of 2026
Filed Oct 20, 2026NORTHPOINTE BANCSHARES, INC. REPORTS THIRD QUARTER 2026 RESULTS Announces Strategic Decision to Sell Distributed Retail and Consumer Direct Mortgage Origination Channels
Net income available to common stockholders, diluted earnings per share, return metrics and efficiency deteriorated from both comparison periods, while MPP and AIO balances, deposits and net interest income grew. Results included fair value declines and an isolated deposit fraud loss, and the Company announced a planned sale of its distributed retail and consumer direct mortgage origination channels.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income available to common stockholdersGAAP | $13.9M | – | – |
| Net incomeGAAP | $14.38M | – | – |
| Basic earnings per shareGAAP | $0.40 | – | – |
| Diluted earnings per shareGAAP | $0.39 per diluted share | – | – |
| Net interest income before provisionGAAP | $43.7M | $1.2 million increase | $3.3 million increase |
| Net interest marginGAAP | 2.32% | decrease of 1 basis point | decrease of 15 basis points |
| Average interest-earning assetsother | $7.46B | $157.0 million increase | $987.3 million increase |
| Total provision for credit losses, including loans and unfunded commitmentsGAAP | $845,000 | – | – |
| Non-interest incomeGAAP | $12.3M | $9.6 million decrease | $11.8 million decrease |
| MPP feesGAAP | $2.2M | $118,000 decrease | $731,000 increase |
| Loan servicing feesGAAP | $7.6M | $5.3 million increase | $6.5 million increase |
| Change in fair value of MSRsGAAP | $5.01M | – | – |
| Net gain on sale of loansGAAP | $2.2M | – | – |
| Net gain on sale of loans, excluding portfolio sales and LRA / HFI fair value adjustmentsother | $11.5M | $4.9 million decrease | $6.0 million decrease |
| Non-interest expenseGAAP | $36.1M | $0.8 million increase | $1.7 million increase |
| Salaries and benefits expenseGAAP | $21.91M | $3.1 million decrease | $2.4 million decrease |
| Other non-interest expenseGAAP | $7.37M | $3.8 million increase | $4.0 million increase |
| Income before income taxesGAAP | $19.02M | – | – |
| Income tax expenseGAAP | $4.6M | – | – |
| Effective tax rateGAAP | 24.43% | – | – |
| Return on average assetsGAAP | 0.75% | – | – |
| Return on average equityGAAP | 9.10% | – | – |
| Return on average tangible common equitynon-GAAP | 9.19% | – | – |
| Efficiency ratioother | 64.47% | – | – |
| Total assetsGAAP | $7.67B | $136.7 million increase | $827.0 million increase |
| Cash and cash equivalentsGAAP | $489.9M | – | – |
| Gross loans held for investmentGAAP | $6.79B | $313.5 million, or 19% annualized, increase | $826.5 million, or 14%, increase |
| Loans held for saleGAAP | $173M | – | – |
| Allowance for credit lossesGAAP | $10M | – | – |
| Allowance for credit losses to loans HFIGAAP | 0.15% | – | – |
| Total depositsGAAP | $5.44B | $210.4 million, or 16% annualized, increase | $674.1 million, or 14%, increase |
| Total borrowingsGAAP | $1.43B | $85.0 million decrease | $58.5 million increase |
| Subordinated debenturesGAAP | $112M | – | – |
| Net charge-offsGAAP | $429,000, or 2 basis points annualized as a percentage of average loans | – | – |
| Non-performing assetsGAAP | $95.5M | $8.9 million increase | – |
| Non-performing assets to total assetsGAAP | 1.25% | – | – |
| Wholesale funding ratioother | 63.94% | – | – |
| Tangible book value per sharenon-GAAP | $17.32 | – | – |
| Book value per shareGAAP | $18.06 | – | – |
fourth quarter of 2026 / by the end of 2026 outlook
- NoteThe Company currently estimates restructuring charges of between $6 million and $7 million, with the majority realized during the fourth quarter of 2026.
- NoteSubject to the satisfactory completion of due diligence, execution of a definitive agreement and customary closing conditions, the Company anticipates the proposed transaction should close by the end of 2026.
- NoteThe Company plans to acquire additional renewable energy tax credits during the fourth quarter of 2026 to help reduce its overall effective tax rate for the year.
Capital returns
- The Company’s Board of Directors increased its regular quarterly cash dividend to $0.03 per share, from $0.025 per share, payable on November 4, 2026, to stockholders of record as of October 15, 2026.
What drove it
- MPP balances increased by $262.7 million, or 27% annualized, from the prior quarter.
- First-lien home equity lines tied to a demand deposit sweep account increased by $100.4 million, or 50% annualized, including the purchase of $85.4 million in seasoned AIO loans on September 30, 2026.
- Net interest income before provision increased from both comparable periods, driven by higher average interest-earning assets.
- Loan servicing fees increased due to changes in the fair value of MSRs primarily attributable to movement in market interest rates.
- The Company reduced current-period income tax expense by $608,000 through acquisition of renewable energy investment tax credits.
Concerns
- Current-quarter results included a $9.3 million combined decrease in fair value of loans HFI and LRA, partially offset by a $5.0 million increase in fair value of MSRs.
- The Company recorded $3.1 million in operational losses within non-interest expense from an isolated external deposit fraud incident within the retail banking center.
- Net gain on sale of loans declined versus both comparable periods, reflecting lower levels of residential mortgage interest rate lock commitments.
- Net interest margin declined to 2.32%, with the linked-quarter decline driven primarily by a higher average cost of deposits.
- Non-performing assets increased by $8.9 million from the prior quarter.
- The proposed sale of distributed retail and consumer direct mortgage origination channels remains subject to due diligence, a definitive agreement and customary closing conditions.
What to watch
- Timing, definitive terms and closing of the proposed sale to CMG Financial and its affiliates, which the Company anticipates should close by the end of 2026.
- Restructuring charges of between $6 million and $7 million, with the majority expected during the fourth quarter of 2026.
- Potential insurance recoveries related to the isolated deposit fraud incident.
- Net interest margin, deposit costs and the funding mix following the third-quarter 1 basis point decline in net interest margin.
- Growth in MPP and AIO loans, participation balances and relationship-based deposits.
- The Company’s planned acquisition of additional renewable energy tax credits during the fourth quarter of 2026.
Balance sheet and cash flow
- Total assets were $7.67 billion at September 30, 2026.
- Cash and cash equivalents were $ 489,901 at September 30, 2026.
- Gross loans held for investment were $6.79 billion at September 30, 2026.
- Total deposits were $5.44 billion at September 30, 2026.
- Total borrowings were $1.43 billion at September 30, 2026.
- Subordinated debentures were $112.0 million at September 30, 2026.
Analysis
Northpointe reported third-quarter net income available to common stockholders of $13.9 million, or $0.39 per diluted share, compared with $21.3 million, or $0.60 per diluted share, in the second quarter of 2026 and $20.1 million, or $0.57 per diluted share, in the third quarter of 2025. Return on average equity was 9.10%, return on average tangible common equity was 9.19%, and the efficiency ratio was 64.47%, versus 14.36%, 14.69%, and 54.76%, respectively, in the prior quarter. The period included a $9.3 million combined decrease in the fair value of loans HFI and LRA, partially offset by a $5.0 million increase in MSR fair value, as well as $3.1 million in operational losses tied to an isolated deposit fraud incident.
Core balance-sheet growth continued. Gross loans held for investment were $6.79 billion, up $313.5 million, or 19% annualized, from June 30, 2026, led by MPP balances and AIO loans. MPP balances increased by $262.7 million, or 27% annualized, while AIO balances increased by $100.4 million, or 50% annualized, including a purchase of $85.4 million in seasoned AIO loans. Total deposits increased by $210.4 million, or 16% annualized, from the prior quarter to $5.44 billion, driven primarily by higher demand deposits and brokered CDs.
Net interest income before provision was $43.7 million, an increase of $1.2 million from the second quarter and $3.3 million from the prior-year quarter. Higher average interest-earning assets supported the increase, but net interest margin declined to 2.32% from 2.33% in the prior quarter and 2.47% a year earlier. The sequential margin decline was primarily driven by a higher average cost of deposits, partially offset by higher average yields on loans and an improvement in the funding mix. Wholesale funding ratio increased to 63.94% from 63.09% in the prior quarter.
Mortgage-related fee performance was uneven. Loan servicing fees were $7.6 million, rising $5.3 million sequentially and $6.5 million year over year, principally because of MSR fair-value movements. MPP fees were $2.2 million, down $118,000 sequentially but up $731,000 from the prior-year quarter. Net gain on sale of loans was $2.2 million, compared with $17.0 million in the prior quarter and $21.0 million a year earlier. Excluding portfolio sales and LRA/HFI fair-value adjustments, net gain on sale of loans was $11.5 million, down $4.9 million sequentially and $6.0 million year over year, reflecting lower residential mortgage interest rate lock commitments.
Credit metrics remained mixed. Net charge-offs were $429,000, or 2 basis points annualized as a percentage of average loans, lower than both comparison periods. However, non-performing assets rose to $95.5 million from $86.7 million in the prior quarter, while the provision for credit losses, including loans and unfunded commitments, was $845,000. The Company also announced a non-binding letter of intent to sell its distributed retail and consumer direct mortgage origination channels to CMG Financial and its affiliates. It estimates restructuring charges of between $6 million and $7 million, with the majority expected in the fourth quarter of 2026, and anticipates the proposed transaction should close by the end of 2026, subject to stated conditions.
Management, verbatim
Our core operating performance remained strong, led by continued growth in our Mortgage Purchase Program (MPP) business and the successful execution of an opportunistic balance sheet acquisition strategy during the quarter.
Chuck Williams, Chairman and Chief Executive Officer
Our third quarter financial results were negatively impacted by fair value declines driven by higher long-term interest rates and expenses associated with an isolated deposit fraud within our retail banking center, which we promptly addressed through strengthened procedures and additional controls.
Chuck Williams, Chairman and Chief Executive Officer
Given today’s economic and operating environment, and the continued evolution of the mortgage distribution channels, we are refocusing our strategic priorities where we have the strongest competitive advantages.
Chuck Williams, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Total revenue was not reported.
- Gross profit and gross margin were not reported.
- Operating income was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Share repurchases were not reported.
- A formal revenue, earnings, margin, expense or tax-rate outlook was not reported.
- The amount and timing of any insurance recovery associated with the deposit fraud incident were not reported.
- Expected expense savings from the proposed channel sale or restructuring were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.