Northpointe Bancshares, Inc. Reports Third Quarter 2026 Results

Northpointe Bancshares, Inc. Reports Third Quarter 2026 Results GRAND RAPIDS, Mich.--( BUSINESS WIRE)--Northpointe Bancshares, Inc. (NYSE: NPB) (“Northpointe” or the “Company”), the holding company for Northpointe Bank (the "Bank"), today reported net income to common stockholders of $13.9 million, or $0.39 per diluted share, for the third quarter of 2026. This compares to $21.3 million, or $0.60 per diluted share, for the second quarter of 2026, and $20.1 million, or $0.57 per diluted share, for the third quarter of 2025.

Chief Executive Officer Commentary

“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,” said 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.”

The Company also announced today it plans to sell the distributed retail and consumer direct mortgage origination channels to CMG Financial and its affiliates (“CMG”). The Company and CMG have entered into a non-binding letter of intent regarding the proposed transaction. Subject 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.

“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,” Williams continued. “This allows us to deepen client relationships, generate attractive portfolio assets, and grow relationship-based deposits, which we expect will improve operating leverage, capital efficiency and create a more robust, stable and scalable earnings profile.”

The Company currently estimates restructuring charges of between $6 million and $7 million, with the majority realized during the fourth quarter of 2026. Loans currently in process will continue to be closed, and the Company will provide support to the affected team members. Further details on the timing and anticipated restructuring charges, expense savings, and potential transaction will be provided on the Company’s earnings call on October 21, 2026.

“We believe CMG would be a strong home for our origination team and a constructive path for our customers, referral partners and team members,” Williams concluded. “We remain highly committed to the mortgage banking industry, and believe allocating capital and resources to our businesses with the strongest client relationships and balance sheet opportunities provide us the best path forward for long-term growth and shareholder returns.”

Third Quarter 2026 Highlights

Net Interest Income

Net interest income before provision was $43.7 million for the third quarter of 2026, an increase of $1.2 million compared to the second quarter of 2026. The linked quarter increase reflects a $157.0 million increase in average interest-earning assets partially offset by a 1 basis point decrease in net interest margin. As compared to the third quarter of 2025, net interest income before provision increased by $3.3 million, which was driven primarily by a $987.3 million increase in average interest-earning assets partially offset by a 15 basis point decrease in net interest margin.

Net interest margin was 2.32% for the third quarter of 2026, a decrease of 1 basis point compared to 2.33% in the second quarter of 2026 and a decrease of 15 basis points compared to 2.47% in the third quarter of 2025. The linked quarter decrease was driven primarily by a higher average cost of deposits, partially offset by higher average yields on loans and an improvement in the funding mix. 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 September 30, 2026 increased by $157.0 million from June 30, 2026 and by $987.3 million compared to September 30, 2025. The increases from both comparable periods reflect the strong growth in MPP and AIO loan 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 (including both loans and unfunded commitments) of $845,000 in the third quarter of 2026, compared to provision of $210,000 in the second quarter of 2026 and provision of $828,000 in the third 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 $10.0 million at September 30, 2026, $9.4 million at June 30, 2026 and $12.3 million at September 30, 2025. The allowance for credit losses represented 0.15% of loans HFI at both September 30, 2026 and June 30, 2026, and 0.21% of loans HFI at September 30, 2025. The majority of the growth in the loans HFI portfolio has come from MPP and 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 September 30, 2026, residential mortgage, construction, and other consumer / home equity loans have decreased by $49.6 million from June 30, 2026 and by $215.2 million from September 30, 2025.

Total provision for credit losses in the third quarter of 2026 reflected net charge-offs of $429,000, and an increase of $524,000 in allowance for credit losses, which was primarily attributable to higher forecasted loss rates resulting from an update to Moody’s credit models, partially offset by lower allowance from an improvement in qualitative factors. Total provision for credit losses in the prior quarter 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 the loan mix, partially offset by slightly higher loss rates from the economic forecasts used in the credit models. Total provision for credit losses in the prior year quarter reflected net charge-offs of $977,000 and a decrease of $125,000 in allowance for credit losses.

Non-interest Income

Non-interest income was $12.3 million for the third quarter of 2026, a decrease of $9.6 million compared to the second quarter of 2026 and a decrease of $11.8 million compared to the third quarter of 2025.

MPP fees, which are driven by total loans funded and participation balances, were $2.2 million for the third quarter of 2026, a decrease of $118,000 compared to the second quarter of 2026 and an increase of $731,000 compared to the third quarter of 2025. The decrease compared to the prior quarter reflects lower participation volume, and the increase compared to the prior year quarter was driven primarily by higher levels of funded loans.

Loan servicing fees were $7.6 million for the third quarter of 2026, an increase of $5.3 million compared to the second quarter of 2026 and an increase of $6.5 million compared to the third quarter of 2025. The changes from both comparable periods reflect changes in the fair value of MSRs primarily attributable to the movement in market interest rates during the respective periods.

Net gain on sale of loans was $2.2 million for the third quarter of 2026, compared to $17.0 million for the second quarter of 2026 and $21.0 million for the third 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 third quarter of 2026 included a decrease of $9.3 million from the combined change in fair value of loans HFI and 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 $11.5 million, a decrease of $4.9 million on a comparative basis from the second quarter of 2026 and a decrease of $6.0 million on a comparative basis from the third 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 $36.1 million for the third quarter of 2026, an increase of $0.8 million compared to the second quarter of 2026 and an increase of $1.7 million compared to the third quarter of 2025.

Salaries and benefits expense decreased by $3.1 million on a linked quarter basis and decreased by $2.4 million compared to the third quarter of 2025. The linked quarter decrease was driven primarily by lower variable compensation on mortgage production, along with lower bonus and incentive compensation. The decrease compared to the prior year quarter was driven primarily by lower bonus and incentive compensation, lower base salaries and lower variable compensation on mortgage production.

Other non-interest expense increased by $3.8 million on a linked quarter basis and increased by $4.0 million compared to the third quarter of 2025. The increases from both comparable periods reflect the $3.1 million related to the isolated deposit fraud noted above.

Taxes

Income tax expense for the third quarter of 2026 was $4.6 million, compared to $7.1 million for the second quarter of 2026 and $7.0 million for the third quarter of 2025. The Company’s effective tax rate was 24.43% for the third quarter of 2026 compared to 24.72% for the second quarter of 2026 and 24.00% for the third quarter of 2025. The effective tax rate in the third quarter of 2026 includes a $608,000 benefit from the acquisition of renewable energy investment tax credits made during the quarter, partially offset by a higher state tax rate. The 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.

Balance Sheet Highlights

Total assets were $7.67 billion at September 30, 2026, representing an increase of $136.7 million compared to June 30, 2026 and an increase of $827.0 million compared to September 30, 2025. The increases for both comparable periods were driven primarily by growth in loans.

Gross loans held for investment were $6.79 billion at September 30, 2026, an increase of $313.5 million, or 19% annualized, compared to June 30, 2026 and an increase of $826.5 million, or 14%, compared to September 30, 2025. The increases from 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 HFI portfolio. Outside of the MPP and AIO portfolios, no other significant loans are being added to the loans HFI portfolio. At September 30, 2026, virtually all the loan portfolio was comprised of loans collateralized by residential property.

Loans held for sale totaled $173.0 million at September 30, 2026, compared to $312.0 million at June 30, 2026 and $259.8 million at September 30, 2025, and reflect the timing and level of saleable residential mortgage originations during each respective period.

Total deposits were $5.44 billion at September 30, 2026, an increase of $210.4 million, or 16% annualized, compared to June 30, 2026 and an increase of $674.1 million, or 14%, compared to September 30, 2025. The linked quarter increase was driven primarily by higher levels of interest-bearing demand, non-interest bearing demand and brokered deposits, partially offset by lower CDs and savings and money market deposits. As compared to September 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 $1.43 billion at September 30, 2026, a decrease of $85.0 million compared to June 30, 2026 and an increase of $58.5 million compared to September 30, 2025. The changes from 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 September 30, 2026 and June 30, 2026, and $24.2 million at September 30, 2025. The increase from September 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 new 7.50% fixed-to-floating rate subordinated notes issued during the fourth quarter of 2025.

Asset Quality

Net charge-offs were $429,000, or 2 basis points annualized as a percentage of average loans, for the third quarter of 2026. This compares to $528,000, or 3 basis points annualized as a percentage of average loans, for the second quarter of 2026, and $977,000, or 7 basis points annualized as a percentage of average loans, for the third 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 $95.5 million at September 30, 2026 ($68.5 million excluding guaranteed loans), $86.7 million at June 30, 2026 ($60.0 million excluding guaranteed loans) and $85.2 million at September 30, 2025 ($57.7 million excluding guaranteed loans). Non-performing assets represented 1.25% of total assets at September 30, 2026 (0.89% excluding guaranteed loans), 1.15% at June 30, 2026 (0.80% excluding guaranteed loans) and 1.25% at September 30, 2025 (0.85% excluding guaranteed loans).

Capital

At September 30, 2026, the estimated capital levels for the Company and 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 September 30, 2026 are estimates, pending completion and filing of the Bank’s regulatory reports.

Earnings Presentation and Conference Call

Northpointe will host its third quarter of 2026 earnings conference call on October 21, 2026 at 10:00 a.m. E.T. During the call, management will discuss the third 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 and outcome 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; the Company’s ability to successfully execute the exit or sale of its distributed retail and consumer direct mortgage origination channels, including the risks that the Company and CMG may not successfully complete due diligence, negotiate or execute definitive agreements, obtain required corporate or regulatory approvals, satisfy applicable closing conditions, or otherwise consummate the proposed sale on the anticipated terms, timeline, or at all; that the proposed sale may be modified, delayed, or terminated; that, if the proposed sale is not completed, the Company may pursue a wind-down or other strategic alternative for the distributed retail and consumer direct mortgage origination channels, which could result in additional costs, delays, operational disruptions, or other adverse consequences; that restructuring charges may exceed, or expected expense savings may be less than or realized later than, current expectations, and the effects of the exit on employees, customers, revenue and the Company’s reputation; the Company’s ability to achieve the anticipated benefits of its re-focused strategic priorities, including growth in its Mortgage Purchase Program, relationship-based deposits and opportunistic balance sheet acquisitions; 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

Nine Months Ended

Sept 30,

2026

June 30,

2026

Sept 30,

2025

Sept 30,

2026

Sept 30,

2025

Interest income

Loans - including fees

104,078

100,126

94,044

299,118

252,376

Investment securities - taxable

199

399

Federal Home Loan Bank ("FHLB") stock - taxable

1,779

1,780

1,605

5,305

4,786

Interest bearing deposits

4,826

5,071

6,100

14,685

16,518

Total interest income

110,765

107,038

101,836

319,307

274,079

Interest expense

Deposits

50,415

47,715

48,169

142,585

128,061

Subordinated debentures

2,420

2,519

679

7,041

2,244

Borrowings

14,275

14,382

12,657

42,330

36,534

Total interest expense

67,110

64,616

61,505

191,956

166,839

Net interest income

43,655

42,422

40,331

127,351

107,240

Provision (benefit) for credit losses

920

264

852

715

2,785

Provision (benefit) for unfunded commitments

(75

)

(54

)

(24

)

(105

)

(79

)

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

42,810

42,212

39,503

126,741

104,534

Non-Interest Income

Service charges on deposits and fees

343

315

217

922

635

Loan servicing fees

7,589

2,268

1,117

13,405

3,637

MPP fees

2,188

2,306

1,457

6,465

3,952

Net gain on sale of loans

2,188

17,046

20,953

35,780

58,892

Other non-interest income (loss)

(46

)

(41

)

285

(271

)

2,224

Total Non-Interest Income

12,262

21,894

24,029

56,301

69,340

Non-Interest Expense

Salaries and benefits

21,909

25,026

24,336

71,288

67,012

Occupancy and equipment

726

744

811

2,291

2,701

Data processing expense

2,604

2,521

2,190

7,473

6,451

Professional fees

1,492

1,362

1,701

4,172

4,722

Other taxes and insurance

1,955

1,987

1,998

6,179

4,974

Other non-interest expense

7,365

3,579

3,322

14,302

9,590

Total Non-Interest Expense

36,051

35,219

34,358

105,705

95,450

Income before income taxes

19,021

28,887

29,174

77,337

78,424

Income tax expense

4,646

7,141

7,001

19,061

18,658

Net Income

14,375

21,746

22,173

58,276

59,766

Preferred stock dividends

453

2,041

1,359

6,544

Net Income Available To Common Stockholders

13,922

21,293

20,132

56,917

53,222

Basic Earnings Per Share

0.40

0.61

0.58

1.64

1.61

Diluted Earnings Per Share

0.39

0.60

0.57

1.61

1.58

Weighted Average Shares Outstanding

34,740,412

34,602,289

34,727,830

33,006,655

Diluted Weighted Average Shares Outstanding

35,425,447

35,416,828

35,337,136

35,368,297

33,668,316

NORTHPOINTE BANCSHARES, INC.

(unaudited, dollars in thousands except per share data)

Consolidated Balance Sheets

Sept 30,

2026

June 30,

2026

Sept 30,

2025

Assets

Cash and cash equivalents

489,901

538,359

419,162

Equity securities

1,283

1,333

1,342

Debt securities available for sale

4,858

4,880

4,752

FHLB stock

77,207

76,099

80,109

Loans held for sale ("HFS"), at fair value

173,047

311,991

259,835

Loans held for investment ("HFI") (1)

6,793,691

6,480,158

5,967,235

Allowance for credit losses

(9,960

)

(9,436

)

(12,250

)

Net loans

6,783,731

6,470,722

5,954,985

Mortgage servicing rights

31,040

23,088

16,763

Intangible assets, net

1,074

1,220

1,660

Premises and equipment

26,694

26,970

27,658

Lender risk account

27,350

29,343

30,115

Other assets

50,427

45,946

43,199

Total Assets

7,666,612

7,529,951

6,839,580

Liabilities

Non-interest-bearing

294,330

276,532

235,733

Interest-bearing

5,149,429

4,956,783

4,533,904

Total Deposits

5,443,759

5,233,315

4,769,637

Borrowings

1,427,500

1,512,500

1,369,034

Subordinated debentures

112,038

111,955

24,203

Subordinated debentures issued through trusts

5,000

Deferred tax liability

5,795

4,637

2,651

Other liabilities

47,831

50,896

45,530

Total Liabilities

7,041,923

6,918,303

6,216,055

Stockholders' Equity

Preferred stock, common stock and additional paid in capital

206,104

276,885

Retained earnings

418,692

405,634

346,829

Accumulated other comprehensive loss

(107

)

(90

)

(189

)

Total Stockholders' Equity

624,689

611,648

623,525

Total Liabilities and Stockholders' Equity

7,666,612

7,529,951

6,839,580

(1) Includes $151.5 million, $165.6 million and $179.4 million of loans carried at fair value at September 30, 2026, June 30, 2026 and September 30, 2025, respectively.

NORTHPOINTE BANCSHARES, INC.

(unaudited, dollars in thousands except per share data)

Selected Financial Highlights

Three Months Ended

Nine Months Ended

Sept 30,

2026

June 30,

2026

Sept 30,

2025

Sept 30,

2026

Sept 30,

2025

PER COMMON SHARE

Diluted earnings per share

0.39

0.60

0.57

1.61

1.58

Book value

18.06

17.69

18.14

18.06

18.14

Tangible book value (1)

17.32

16.94

15.23

17.32

15.23

PERFORMANCE RATIOS

Return on average assets (annualized)

0.75

1.18

1.34

1.06

1.33

Return on average equity (annualized)

9.10

14.36

14.23

12.84

13.70

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

9.19

14.69

15.41

13.10

14.77

Net interest margin

2.32

2.33

2.47

2.36

2.43

Efficiency ratio (2)

64.47

54.76

53.38

57.56

54.05

ASSET QUALITY AND RATIOS

Allowance for credit losses to loans HFI

0.15

0.21

0.15

0.21

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

0.15

0.21

0.15

0.21

Allowance for credit losses to non-accrual loans

12.01

11.80

15.82

12.01

15.82

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

17.24

17.19

24.08

17.24

24.08

Net charge-offs

429

528

977

1,224

1,728

Annualized net charge-offs to average loans

0.02

0.03

0.07

0.02

0.03

Non-performing assets to total assets

1.25

1.15

1.25

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

0.89

0.80

0.85

0.89

0.85

Non-performing loans to total gross loans

1.33

1.23

1.35

1.33

1.35

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

0.94

0.84

0.91

0.94

0.91

SELECTED OTHER INFORMATION

Equity / assets

8.15

8.12

9.12

8.15

9.12

Tangible common equity / tangible assets (1)

7.81

7.78

7.66

7.81

7.66

Loans / deposits (4)

124.80

123.83

125.11

124.80

125.11

Liquidity ratio (5)

6.39

7.15

6.13

6.39

6.13

Wholesale funding ratio (6)

63.94

63.09

67.58

63.94

67.58

SELECTED MORTGAGE DATA

Residential mortgage originations

493,316

670,607

636,600

1,857,597

1,787,620

Residential mortgage interest rate lock commitments

570,386

719,118

823,261

2,191,185

2,306,015

Residential mortgage applications

830,475

1,006,895

1,113,569

2,910,998

3,283,606

MPP total loans funded

12,363,967

12,806,011

9,822,322

36,333,080

25,576,189

MPP balances participated (period end)

368,277

489,009

37,450

368,277

37,450

Total loans serviced for others (UPB) (7)

6,020,162

5,498,627

4,542,688

6,020,162

4,542,688

Loans serviced for others (UPB)

2,181,911

2,031,256

1,754,235

2,181,911

1,754,235

Loans sub-serviced for others (UPB)

3,838,251

3,467,371

2,788,453

3,838,251

2,788,453

(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

September 30, 2026

June 30, 2026

September 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)

6,856,369

104,078

6.02

6,664,882

100,126

6.03

5,835,496

94,044

6.39

Securities, AFS (3)

6,213

5.24

6,120

4.00

7,116

4.85

Securities, FHLB Stock

76,496

1,779

9.23

76,461

1,780

9.34

78,621

1,605

8.10

Interest bearing deposits

519,110

4,826

3.69

553,686

5,071

3.67

549,657

6,100

4.40

Total Interest Earning Assets

7,458,188

110,765

5.89

7,301,149

107,038

5.88

6,470,890

101,836

6.24

Noninterest Earning Assets (4)

119,701

115,708

103,976

Total Assets

7,577,889

7,416,857

6,574,866

Liabilities

Deposits:

Transaction accounts

1,429,225

14,430

4.01

1,254,772

12,446

3.98

1,009,709

11,246

4.42

Savings & money market

426,465

3,610

3.36

491,371

4,187

3.42

325,660

3,143

3.83

Time

3,163,595

32,375

4.06

3,136,971

31,082

3.97

3,063,371

33,780

4.37

Total interest-bearing deposits

5,019,285

50,415

3.98

4,883,114

47,715

3.92

4,398,740

48,169

4.34

Sub Debt

111,984

2,420

8.57

116,905

2,519

8.64

29,189

679

9.23

Borrowings

1,434,141

14,275

3.95

1,455,723

14,382

3.96

1,245,949

12,657

4.03

Total interest-bearing liabilities

6,565,410

67,110

4.06

6,455,742

64,616

4.01

5,673,878

61,505

4.30

Noninterest-bearing deposits

319,378

301,940

234,252

Other noninterest-bearing liabilities

66,446

51,939

48,425

Total noninterest-bearing liabilities

385,824

353,879

282,677

Equity

626,655

607,236

618,311

Total Liabilities and Equity

7,577,889

7,416,857

6,574,866

Net Interest Income

43,655

42,422

40,331

Net Interest Spread (5)

1.84

1.87

1.94

Net Interest Margin (6)

2.32

2.33

2.47

(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 $50,000, $51,000, and $45,000 for the quarters ended September 30, 2026, June 30, 2026 and September 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)

Nine Months Ended

September 30, 2026

September 30, 2025

Average Principal Balance

Income/ Expense

Yield/ Rate

Average Principal Balance

Income/ Expense

Yield/ Rate

Assets

Loans (1)(2)

6,608,266

299,118

6.05

5,327,769

252,376

6.33

Securities, AFS (3)

6,177

199

4.31

8,970

399

5.95

Securities, FHLB Stock

77,676

5,305

9.13

72,623

4,786

8.81

Interest bearing deposits

533,553

14,685

3.68

500,241

16,518

4.41

Total Interest Earning Assets

7,225,672

319,307

5.91

5,909,603

274,079

6.20

Noninterest Earning Assets (4)

115,250

105,949

Total Assets

7,340,922

6,015,552

Liabilities

Deposits:

Transaction accounts

1,269,568

37,788

3.98

839,210

27,630

4.40

Savings & money market

483,737

12,411

3.43

329,685

9,506

3.86

Time

3,080,742

92,386

4.01

2,743,269

90,925

4.43

Total interest-bearing deposits

4,834,047

142,585

3.94

3,912,164

128,061

4.38

Sub Debt

106,875

7,041

8.81

29,166

2,244

10.29

Borrowings

1,430,508

42,330

3.96

1,235,247

36,534

3.95

Total interest-bearing liabilities

6,371,430

191,956

4.03

5,176,577

166,839

4.31

Noninterest-bearing deposits

304,684

214,521

Other noninterest-bearing liabilities

57,884

41,027

Total noninterest-bearing liabilities

362,568

255,548

Equity

606,924

583,427

Total Liabilities and Equity

7,340,922

6,015,552

Net Interest Income

127,351

107,240

Net Interest Spread (5)

1.88

1.89

Net Interest Margin (6)

2.36

2.43

(1)

(2)

Loan fees of $152,000 and $114,000 for the nine months ended September 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)

Sept 30,

2026

June 30,

2026

Sept 30,

2025

Residential:

Construction

6,445

8,271

18,973

All-in-One (AIO)

897,609

797,232

701,580

Other Consumer/Home Equity

45,635

48,127

56,592

Residential Mortgage (1)

1,622,937

1,668,169

1,814,623

Commercial

20,418

20,438

10,581

MPP

4,200,647

3,937,921

3,364,886

Total Loans HFI

6,793,691

6,480,158

5,967,235

Total Loans HFS

173,047

311,991

259,835

Total Gross Loans (HFI and HFS)

6,966,738

6,792,149

6,227,070

(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)

Sept 30,

2026

June 30,

2026

Sept 30,

2025

Noninterest-bearing demand

294,330

276,532

235,733

Interest-bearing demand

1,518,425

1,359,670

1,056,372

Savings & money market

372,406

458,947

321,077

Brokered time deposits

2,966,267

2,743,529

2,779,203

Other time deposits

292,331

394,637

377,252

Total deposits

5,443,759

5,233,315

4,769,637

Loan Servicing Fees

Three Months Ended

Nine Months Ended

(Dollars in thousands)

Sept 30,

2026

June 30,

2026

Sept 30,

2025

Sept 30,

2026

Sept 30,

2025

Fees on servicing

2,577

2,388

2,027

7,191

5,556

Change in fair value of MSRs (1)

5,012

(120

)

(910

)

6,214

(1,919

)

Total loan servicing fees

7,589

2,268

1,117

13,405

3,637

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

Net Gain on Sale of Loans

Three Months Ended

Nine Months Ended

(Dollars in thousands)

Sept 30,

2026

June 30,

2026

Sept 30,

2025

Sept 30,

2026

Sept 30,

2025

Capitalized MSRs

2,940

2,750

1,285

7,928

3,254

Change in fair value of loans (1)

(12,778

)

2,706

725

(13,596

)

8,743

Gain/loss on sale of portfolio loans (2)

(43

)

—

1,234

(43

)

1,234

Gain on sale of loans, net (3)

12,069

11,590

17,709

41,491

45,661

Total net gain on sale of loans

2,188

17,046

20,953

35,780

58,892

Total net gain on sale of loans

2,188

17,046

20,953

35,780

58,892

Remove: change in fair value of loans HFI and LRA

9,284

(657

)

(2,229

)

9,848

(7,739

)

Remove: gain/ loss on sale of portfolio loans

—

(1,234

)

(1,234

)

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

11,515

16,389

17,490

45,671

49,919

(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

Nine Months Ended

(Dollars in thousands)

Sept 30,

2026

June 30,

2026

Sept 30,

2025

Sept 30,

2026

Sept 30,

2025

Salaries and other compensation

8,735

8,827

8,177

26,134

23,845

Salary deferral from loan origination

(1,322

)

(1,203

)

(1,151

)

(3,586

)

(3,110

)

Bonus and incentive compensation

3,585

4,274

5,425

12,459

12,631

MPP - variable compensation

1,502

1,536

1,075

4,527

2,751

Mortgage production - variable compensation

6,411

8,259

7,578

21,711

21,365

Employee benefits

2,998

3,333

3,232

10,043

9,530

Total salaries and employee benefits

21,909

25,026

24,336

71,288

67,012

Non-performing Assets

(Dollars in thousands)

Sept 30,

2026

June 30,

2026

Sept 30,

2025

Unguaranteed

57,770

54,888

50,870

Wholly or partially guaranteed

25,164

25,073

26,568

Total non-accrual loans

82,934

79,961

77,438

Unguaranteed

7,908

2,132

5,522

Wholly or partially guaranteed

1,870

1,598

941

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

9,778

3,730

6,463

Unguaranteed

65,678

57,020

56,392

Wholly or partially guaranteed

27,034

26,671

27,509

Total non-performing loans

92,712

83,691

83,901

Other real estate owned

2,823

2,980

1,339

Total non-performing assets

95,535

86,671

85,240

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

68,501

60,000

57,731

Loans past due 31-89 days

34,341

40,066

43,016

Ratios:

Non-accrual loans to total gross loans

1.19

1.18

1.24

Non-performing loans to total gross loans

1.33

1.23

1.35

Non-performing assets to total assets

1.25

1.15

1.25

Ratios excluding loans wholly or partially guaranteed:

Non-accrual loans to total gross loans

0.83

0.81

0.82

Non-performing loans to total gross loans

0.94

0.84

0.91

Non-performing assets to total assets

0.89

0.80

0.85

Regulatory Capital Ratios (1)

Sept 30,

2026

June 30,

2026

Sept 30,

2025

Total Capital (to Risk Weighted Assets)

Consolidated

11.45

11.62

11.32

Bank

11.11

11.26

11.14

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

Consolidated

9.55

9.66

10.72

Bank

10.96

11.10

10.96

CET 1 Capital Ratio (to Risk Weighted Assets)

Consolidated

9.09

9.19

8.96

Bank

10.96

11.10

10.96

Tier 1 Capital (to Average Assets)

Consolidated

8.30

9.57

Bank

9.53

9.54

9.79

(1) The regulatory capital ratios as of September 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 Nine

Months Ended

(Dollars in thousands)

Sept 30,

2026

June 30,

2026

Sept 30,

2025

Sept 30,

2026

Sept 30,

2025

Stockholders' equity (GAAP)

624,689

611,648

623,525

624,689

623,525

Less: Preferred stock

24,979

98,734

24,979

98,734

Less: Intangible assets, net of DTL

809

919

1,267

809

1,267

Tangible common equity

598,901

585,750

523,524

598,901

523,524

Common shares at end of period

34,581,842

34,364,659

34,581,842

34,364,659

Tangible book value per share

17.32

16.94

15.23

17.32

15.23

Book value per share (GAAP)

18.06

17.69

18.14

18.06

18.14

Total assets (GAAP)

7,666,612

7,529,951

6,839,580

7,666,612

6,839,580

Less: Intangible assets, net of DTL

809

919

1,267

809

1,267

Tangible assets

7,665,803

7,529,032

6,838,313

7,665,803

6,838,313

Tangible common equity/tangible assets

7.81

7.78

7.66

7.81

7.66

Equity to assets (GAAP)

8.15

8.12

9.12

8.15

9.12

Net income

14,375

21,746

22,173

58,276

59,766

Less: Preferred stock dividends

453

2,041

1,359

6,544

Net income available to common stockholders

13,922

21,293

20,132

56,917

53,222

Annualized net income available to common stockholders

55,234

85,406

79,872

76,098

71,158

Average tangible common equity

600,792

581,266

518,238

580,953

481,665

Return on average tangible common equity

9.19

14.69

15.41

13.10

14.77

Annualized net income

57,031

87,223

87,969

77,915

79,907

Average equity

626,654

607,236

618,312

606,924

583,427

Return on average equity (GAAP)

9.10

14.36

14.23

12.84

13.70