Northpointe Bancshares Q4 Earnings Call Highlights

Northpointe Bancshares (NYSE:NPB) executives used the company’s fourth-quarter 2025 earnings call to highlight a year of balance sheet expansion, higher profitability, and continued momentum in its Mortgage Purchase Program (MPP) and retail mortgage channels, while also providing initial full-year 2026 guidance across key revenue and expense drivers.

2025 results: asset growth and higher profitability

Chairman and CEO Chuck Williams said the company’s total assets have grown to “over $7 billion” since the bank went public early in 2025, up from $5.2 billion at the end of 2024, with much of the growth driven by the MPP business. Williams reported full-year 2025 earnings per diluted share of $2.11, up 15% from $1.83 in 2024. Return on average assets improved to 1.33% from 1.08%, while return on average tangible common equity rose to 14.43% from 13.94%.

Williams also said tangible book value per share increased year over year, and when adding back dividends, tangible book value per share rose 13.9% on an annual basis.

MPP, mortgages, and deposits: business line highlights

President Kevin Kamps described MPP as the bank’s version of mortgage warehouse lending and emphasized the role of participations in managing balance sheet capacity while generating fee income. In the fourth quarter, average MPP balances rose by $410.2 million from the prior quarter, while period-end balances increased by $60.1 million, which management said was in line with guidance and reflects balances net of participations.

Participations expanded sharply late in the year. Kamps said the bank had participated $457.0 million of MPP balances to partner banks at December 31, 2025, up from $37.5 million at September 30, 2025. During the fourth quarter, Northpointe increased facility sizes for three existing clients (totaling $50 million in additional capacity) and added four new clients (totaling $45 million). For the full year, the bank increased capacity for 28 clients totaling $1.2 billion and signed 29 new client deals totaling $1.8 billion. Utilization averaged slightly over 60% in the quarter.

Kamps said the average yield on the MPP business was 6.98% in the quarter, increasing to 7.22% when including fees, though average yields declined 12 basis points from the prior quarter due to repricing dynamics.

In residential lending, Northpointe closed $762.0 million of mortgages in the fourth quarter, up from $636.6 million in the prior quarter. Management attributed a shift in mix to higher refinancing activity that began late in the third quarter and continued through the fourth quarter as mortgage rates declined slightly. The company sold $665.6 million of mortgages in the quarter, about 87% of total closings, consistent with prior quarters. Kamps said 65% of saleable production came from the traditional retail channel and 35% from Consumer Direct, with the Consumer Direct increase tied to refinancing.

Northpointe’s digital deposit banking channel ended the fourth quarter with $4.9 billion in total deposits, up from $4.8 billion in the third quarter. Kamps said a new digital deposit relationship completed during the quarter drove a $234.2 million increase in savings and money market deposits. He added that during 2025 the bank added two relationships that collectively represented more than $500 million in new core deposits, though those balances can ebb and flow during the year.

In specialty mortgage servicing, Kamps said the bank earned $2.2 million in loan servicing fees in the fourth quarter excluding the negative adjustment related to the change in fair value of the mortgage servicing right (MSR), up from $2.0 million in the prior quarter. Including loans outsourced to a sub-servicer, Northpointe serviced 15,200 loans for others with unpaid principal balance of $4.9 billion as of fourth-quarter 2025, and began specialized servicing for five new relationships and two additional securitizations during 2025.

Asset quality: charge-offs remain low, allowance influenced by forecasts

Management said it was not seeing systemic borrower stress across portfolios. Net charge-offs were $1.2 million in the fourth quarter, up from $977,000 in the prior quarter, representing an annualized net charge-off ratio of 8 basis points. Kamps said the quarter included a handful of larger mortgage, land, and construction charge-offs totaling about $1.0 million, largely tied to non-performing loans where collateral coverage typically limits losses.

Total non-performing assets increased by $7.4 million from the prior quarter, which management characterized as normal seasoning and migration, while early-stage delinquencies (31–89 days past due) fell by $1.9 million quarter over quarter. Kamps said MPP made up 54% of all loans at December 31, 2025 and continued to show “pristine” credit quality.

CFO Brad Howes said the company recorded a $608,000 benefit for credit losses in the fourth quarter, driven primarily by an improved economic forecast in its credit model, “most notably higher forecasted home prices over the next five years.” For 2026, Howes guided to total provision expense of $3 million to $4 million, reflecting replenishment of net charge-offs and growth in MPP and All-in-One (AIO) loans.

2026 guidance: margin, loan growth, fees, and expenses

Howes reported fourth-quarter 2025 net income available to common stockholders of $18.4 million, or $0.52 per diluted share. He noted the company completed a strategy during the quarter to replace a significant portion of preferred stock with subordinated debt, which he said would produce “material annual cost savings in 2026.” The transaction resulted in $3.2 million, or $0.09 per share, of additional expense from unamortized issuance costs recorded in the preferred dividend line with no tax impact. Excluding that item, earnings per diluted share would have been $0.61 for the quarter and $2.20 for full-year 2025.

Net interest income increased $3.2 million from the prior quarter, driven by $393.2 million growth in average interest-earning assets and a 4-basis-point improvement in net interest margin (NIM). Fourth-quarter NIM was 2.51% and full-year 2025 NIM was 2.45%. For 2026, Howes guided to a NIM range of 2.45% to 2.55%, assuming improved loan mix and two additional 25-basis-point Fed funds rate cuts.

Key elements of management’s 2026 outlook included:

• MPP loan balances: year-end 2026 of $4.1 billion to $4.3 billion, with an additional $300 million to $500 million on average participated out during the year.
• AIO loan balances: year-end 2026 of $900 million to $1.0 billion.
• Other loans: excluding MPP and AIO, the remaining portfolio expected to decline to $1.9 billion to $2.1 billion by year-end 2026 (including variability in loans held for sale).
• Saleable mortgage originations: $2.2 billion to $2.4 billion in 2026, with all-in margins of 2.75% to 3.25%. Howes said the outlook assumes no significant decline in mortgage rates and no change in the current level of mortgage originators. He said Consumer Direct accounted for 24% of total saleable volume in 2025 and guidance assumes a similar mix in 2026.
• MPP fees: expected to rise to $9 million to $11 million for full-year 2026, based on participation balances and funded loan growth.
• Loan servicing fees: expected at $9 million to $11 million for full-year 2026 based on new relationships and higher servicing volume.
• Non-interest expense: guided to $138 million to $142 million for 2026, including about $1.0 million of additional salaries and benefits from new roles and cost-of-living adjustments. Howes also said medical benefits expense increased in 2025 and is expected to “somewhat abate” in 2026.

During Q&A, Howes said recent declines in mortgage rates had only a “pretty minimal” impact on guidance so far and that the company would need a more sustained decline to see a significant benefit. On margins, he said improvement from loan mix could be offset by rate cuts, resulting in a relatively steady trajectory through 2026. He also said higher FDIC insurance charges were expected to continue, citing capital levels and the bank’s wholesale funding mix as key drivers.

The company ended the year with a wholesale funding ratio of 64.6%, down from the prior quarter, aided by core deposit growth. Howes said the bank expects to continue funding MPP growth through a mix of brokered CDs, retail deposits, and other non-brokered sources where possible. The effective tax rate was 26.04% in the fourth quarter and 24.44% for full-year 2025, with Howes expecting a similar level in 2026.

In closing remarks, Williams said management plans to remain “nimble and opportunistic” in 2026, with a focus on long-term shareholder value.

About Northpointe Bancshares (NYSE:NPB)

Northpointe Bancshares, Inc is the bank holding company for Northpointe Bank, an FDIC-insured community bank based in Michigan. The company offers a full range of commercial and consumer banking solutions, serving retail, small business and corporate clients through both a physical branch network and digital platforms.

Northpointe Bank’s product suite includes interest-bearing checking and savings accounts, money market and certificate of deposit offerings, as well as residential mortgage lending, home equity financing and unsecured consumer loans.