Northpointe delivered $0.62 in diluted earnings per share and achieved a 1.28% return on average assets in the first quarter of 2026. Tangible book value per share rose over 16% on an annualized basis as the mortgage banking segment recorded gain on sale margins near the lower end of its 2.75%–3.25% guidance range.

The average yield on mortgage production pipelines declined by 39 basis points, while the yield on interest-earning assets decreased by 17 basis points from the prior quarter. Management expects net interest margin expansion driven by a higher-yield mix of MPP and AIO loans, with funding costs remaining stable.

Growth in mortgage production pipeline balances has been fueled by expansions from existing clients and additions of new clients. While the pace of new client onboarding may slow from post-IPO levels, both client segments are projected to continue supporting MPP balance growth.

A recent sub-debt offering provides flexibility to call $25 million of preferred stock without raising additional capital. Northpointe maintains excess borrowing capacity and can pledge MPP loans to the Federal Home Loan Bank, ensuring ample liquidity for future balance sheet expansion.