Northpointe Bancshares Reports $21.3 Million Net Income for Second Quarter of 2026
Northpointe Bancshares, Inc. (NYSE: NPB), the parent company of Northpointe Bank, reported solid financial results for the second quarter of 2026, posting net income to common stockholders of $21.3 million, or $0.60 per diluted share.
The company’s second-quarter earnings were slightly below the $21.7 million, or $0.62 per diluted share, reported in the first quarter of 2026. However, results improved significantly compared with the second quarter of 2025, when Northpointe Bancshares reported net income to common stockholders of $18.0 million, or $0.51 per diluted share.
The results reflect continued growth in the company’s strategically targeted lending businesses, particularly its Mortgage Purchase Program and All-in-One home equity lending products. Northpointe also reported continued balance sheet expansion, strong deposit growth and stable asset quality during the quarter.
“We continued to deliver consistent profitability and strong financial performance for the first half of 2026,” said Chuck Williams, Chairman and Chief Executive Officer of Northpointe Bancshares. “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.”
Strong Performance Continues Through First Half of 2026
Northpointe’s second-quarter results demonstrate the company’s ability to maintain profitability while expanding its balance sheet and focusing on selected lending categories.
Return on average equity was 14.36% during the second quarter, compared with 15.32% in the prior quarter. Return on average tangible common equity was 14.69%, compared with 15.71% in the first quarter. Return on average assets was 1.18%, compared with 1.28% in the prior quarter.
The company reported an efficiency ratio of 54.76% for the quarter, compared with 54.30% in the first quarter. The efficiency ratio is a commonly used banking industry measure that compares operating expenses with revenue and provides an indication of how efficiently a financial institution is managing its costs.
Northpointe also continued to expand its balance sheet. Mortgage Purchase Program balances increased by $77.3 million, representing an annualized increase of 8% compared with the prior quarter. The increase was recorded after accounting for $489.0 million in balances participated to other institutions at the end of the period, compared with $412.7 million in the previous quarter.
First-lien home equity lines connected to demand deposit sweep accounts, which Northpointe refers to as “All-in-One” or “AIO” loans, increased by $36.7 million during the quarter, representing annualized growth of 19%.
Total deposits also rose substantially, increasing by $231.9 million, or 19% on an annualized basis. The increase was driven primarily by higher levels of brokered certificates of deposit.
Asset quality remained stable during the quarter. Non-performing assets declined by $4.0 million from the previous quarter, while net charge-offs remained historically low at $528,000, equivalent to 0.03% of average loans on an annualized basis.
The company’s wholesale funding ratio remained broadly stable at 63.09%, compared with 62.94% at the end of the first quarter.
Quarterly Dividend Declared
Northpointe Bancshares’ Board of Directors declared a regular quarterly cash dividend of $0.025 per share.
The dividend is payable on August 4, 2026, to shareholders of record as of July 15, 2026.
The dividend declaration reflects the company’s ongoing commitment Northpointe Bancshares Reports Second-Quarter 2026 Financial Results to returning capital to shareholders while continuing to support business growth and maintain strong capital levels.
Net Interest Income Increases
Net interest income before provision for credit losses totaled $42.4 million during the second quarter of 2026, an increase of $1.1 million compared with the first quarter.
The sequential increase was primarily driven by a $389.5 million increase in average interest-earning assets. The benefit from asset growth was partially offset by a nine-basis-point decline in net interest margin.
Compared with the second quarter of 2025, net interest income before provision increased by $5.9 million. The year-over-year increase was driven primarily by a $1.30 billion increase in average interest-earning assets, partially offset by an 11-basis-point decline in net interest margin.
Northpointe reported a net interest margin of 2.33% for the second quarter, down from 2.42% in the first quarter and 2.44% in the second quarter of 2025.
The sequential decline was primarily related to lower average yields on Mortgage Purchase Program balances, reflecting tighter margins and a decline in the Secured Overnight Financing Rate, or SOFR. Average rates paid on interest-bearing liabilities remained flat compared with the previous quarter.
The year-over-year decline in net interest margin was primarily attributable to lower average yields on interest-earning assets. The decline in asset yields exceeded the reduction in average rates paid on interest-bearing liabilities.
Average interest-earning assets increased by $389.5 million from March 31, 2026, and by $1.30 billion compared with June 30, 2025. The growth was driven primarily by expansion in the Mortgage Purchase Program and AIO loan portfolios, which remain the company’s primary strategic growth areas.
This growth was partially offset by continued runoff in other portions of the loan portfolio.
Provision for Credit Losses Remains Manageable
Northpointe recorded total provision expense for credit losses of $210,000 during the second quarter of 2026. This compares with a provision benefit of $445,000 in the first quarter and provision expense of $583,000 in the second quarter of 2025.
The company’s provision expense reflects a range of factors, including net loan charge-offs, loan growth, changes in portfolio composition, reserves associated with individually evaluated loans, credit migration trends and changes in economic forecasts used in credit models.
The allowance for credit losses totaled $9.4 million at June 30, 2026, compared with $9.7 million at March 31, 2026, and $12.4 million at June 30, 2025.
The allowance represented 0.15% of loans held for investment at the end of the second quarter, unchanged from the prior quarter and down from 0.23% one year earlier.
The decline in the allowance ratio reflects changes in the composition of the company’s loan portfolio. Much of the growth has been concentrated in Mortgage Purchase Program and AIO balances, while residential mortgage, construction and other consumer and home equity loans have continued to decline.
Combined, residential mortgage, construction and other consumer and home equity loans decreased by $45.0 million from March 31, 2026, and by $216.9 million from June 30, 2025.
The second-quarter provision expense reflected $528,000 in net charge-offs and a $264,000 decrease in the allowance for credit losses. The reduction in the allowance was primarily attributable to lower levels of non-performing loans and continued changes in the loan portfolio mix. These factors were partially offset by slightly higher loss rates associated with economic forecasts used in the company’s credit models.
Non-Interest Income Remains an Important Revenue Source
Northpointe reported non-interest income of $21.9 million for the second quarter of 2026. This was down $300,000 from the first quarter and $500,000 from the second quarter of 2025.
Mortgage Purchase Program fees totaled $2.3 million, increasing by $300,000 from the previous quarter and by $1.0 million compared with the prior-year period.
The increase was driven by higher levels of funded loans and increased participation balances in the Mortgage Purchase Program business.
Loan servicing fees also totaled $2.3 million. This represented a decline of $1.3 million from the first quarter but an increase of $700,000 compared with the second quarter of 2025.
The changes were primarily related to movements in the fair value of mortgage servicing rights,Northpointe Bancshares Reports Second-Quarter 2026 Financial Results which were influenced by changes in market interest rates during the respective periods.
Net gain on sale of loans totaled $17.0 million in the second quarter, compared with $16.5 million in the first quarter and $19.4 million in the second quarter of 2025.
The net gain on sale of loans included a $657,000 increase from combined changes in the fair value of loans held for investment and the lender risk account. Both were influenced by changes in market interest rates.
Excluding those items, net gain on sale of loans totaled $16.4 million. This represented a decline of $1.4 million from the first quarter and $1.2 million from the second quarter of 2025.
The decreases were primarily attributable to lower levels of residential mortgage interest rate lock commitments.
Operating Expenses Increase
Non-interest expense totaled $35.2 million during the second quarter, an increase of $800,000 compared with the first quarter and $3.5 million compared with the second quarter of 2025.
Salaries and benefits expense increased by $700,000 sequentially and by $2.8 million year over year. The sequential increase was primarily driven by higher variable compensation related to mortgage production, reflecting a higher mix of traditional retail volume during the quarter.
The year-over-year increase was driven primarily by higher salaries, other compensation, bonuses and incentive compensation.
Data processing expenses increased by $200,000 compared with the first quarter and by $400,000 from the prior-year period. The increases were primarily related to the timing of certain software expenses.
Other taxes and insurance declined by $300,000 sequentially but increased by $800,000 compared with the second quarter of 2025. Changes in this category were primarily driven by FDIC assessment expense, which can fluctuate based on asset levels, wholesale funding mix and capital utilization.
Balance Sheet Continues to Expand
Northpointe Bancshares reported total assets of $7.53 billion at June 30, 2026. This represented an increase of $134.1 million from March 31, 2026, and $1.10 billion from June 30, 2025.
The growth was driven primarily by increases in loans.
Gross loans held for investment totaled $6.48 billion at the end of the quarter, an increase of $69.0 million, or 4% annualized, compared with the previous quarter. Year over year, loans held for investment increased by $983.4 million, or 18%.
The growth was primarily driven by higher Mortgage Purchase Program balances and AIO loans. These increases were partially offset by declines in other loan categories.
Northpointe continues to focus its strategic growth efforts on the Mortgage Purchase Program and AIO portfolios. Outside of those two categories, the company is not adding significant volumes of other loans to its held-for-investment portfolio.
At June 30, 2026, virtually all of the company’s loan portfolio consisted of loans collateralized by residential property.
Loans held for sale totaled $312.0 million at the end of the second quarter, compared with $297.2 million at March 31, 2026, and $331.2 million at June 30, 2025. The balance reflects the timing of residential mortgage originations that are eligible for sale.
Deposit Growth Strengthens Funding Base
Total deposits reached $5.23 billion at June 30, 2026, increasing by $231.9 million, or 19% annualized, from the prior quarter.
Compared with the second quarter of 2025, deposits increased by $759.2 million, or 17%.
The sequential increase was driven primarily by higher brokered deposits. The year-over-year growth was primarily attributable to higher interest-bearing demand and savings deposits, supported by expansion in Northpointe’s diversified digital deposit banking platform and new deposit relationships.
Total borrowings stood at $1.51 billion at June 30, 2026. This represented a decline of $119.0 million from the previous quarter but an increase of $237.6 million compared with the prior-year period.
The changes were primarily related to fluctuations in the use of short-term lines of credit to meet liquidity requirements.
Subordinated debentures totaled $112.0 million at both June 30, 2026, and March 31, 2026, compared with $24.2 million at June 30, 2025.
The year-over-year increase reflects the issuance of $20.0 million in fixed-to-floating rate subordinated notes during the first quarter of 2026 and $70.0 million in new 7.50% fixed-to-floating rate subordinated notes issued during the fourth quarter of 2025.
Asset Quality Remains Stable
Net charge-offs totaled $528,000 during the second quarter, equivalent to three basis points of average loans on an annualized basis.
This compares with $266,000, or two basis points, in the first quarter and $488,000, or four basis points, in the second quarter of 2025.
Northpointe noted that a substantial portion of its non-performing loans are wholly or partially guaranteed by the U.S. government. As a result, the company reports asset quality metrics both including and excluding guaranteed loans.
Non-performing assets totaled $86.7 million at June 30, 2026, including $60.0 million excluding guaranteed loans.
This compares with $90.7 million at March 31, 2026, and $87.1 million at June 30, 2025.
Non-performing assets represented 1.15% of total assets at the end of the second quarter. Excluding guaranteed loans, the ratio was 0.80%.
By comparison, non-performing assets represented 1.23% of total assets in the previous quarter and 1.35% in the second quarter of 2025.
The decline in non-performing assets from the prior quarter reflects continued improvement in the company’s asset quality position.
Northpointe Bancshares and Northpointe Bank continued to maintain capital levels significantly above regulatory minimum requirements at June 30, 2026.
The bank’s capital levels remained sufficient to meet the requirements for classification as “well-capitalized.”
The regulatory capital ratios reported as of June 30, 2026, are estimates pending the completion and filing of the bank’s regulatory reports.
Overall, Northpointe Bancshares’ second-quarter performance reflected continued profitability, strong balance sheet growth and stable credit quality. The company’s strategic focus on its Mortgage Purchase Program and AIO loan portfolios continued to drive growth in loans and interest-earning assets, while deposit expansion strengthened its funding base.
Although net interest margin declined during the quarter, higher average interest-earning assets supported an increase in net interest income before provision. At the same time, credit costs remained manageable, non-performing assets declined and net charge-offs remained at historically low levels.
With total assets reaching $7.53 billion, loans held for investment increasing 18% year over year and deposits growing 17%, Northpointe enters the second half of 2026 with continued momentum across its core businesses.
The company’s quarterly dividend, strong capital position and continued focus on targeted lending growth further highlight its strategy of balancing expansion with financial discipline and long-term shareholder value creation.
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