Northpointe Bancshares Q3 profit falls on loan revaluations and fraud costs
NPB•Northpointe Bancshares reported Q3 net income of $14.38 million and EPS of $0.39, with results affected by $9.3 million in loan fair-value declines and $3.1 million in deposit-fraud losses. It plans to sell its retail and consumer direct mortgage origination channels to CMG and expects $6 million to $7 million in restructuring charges.
1. Quarterly results
Northpointe Bancshares' Q3 net income to common stockholders and earnings per share declined year over year and quarter over quarter. Net income was $14.38 million, EPS was $0.39, net interest income was $43.66 million and provision for credit losses was $920,000.
2. Factors affecting results
Higher long-term interest rates led to $9.3 million in fair-value declines on loans, partly offset by a $5 million increase in mortgage servicing rights value. The company also recorded $3.1 million in operational losses from an isolated external deposit fraud incident at a retail banking center. Growth in its Mortgage Purchase Program and All-in-One loan balances increased average interest-earning assets.
3. Mortgage channel sale
Northpointe expects to complete the sale of its retail and consumer direct mortgage origination channels to CMG by the end of 2026. It estimates restructuring charges of $6 million to $7 million, mostly in Q4 2026, and plans to provide further details on restructuring and expense savings during an Oct. 21, 2026 call.
