Northpointe Bancshares Q4 Earnings Call Highlights

Core Viewpoint - Northpointe Bancshares reported significant balance sheet expansion and profitability growth in 2025, driven by its Mortgage Purchase Program (MPP) and retail mortgage channels, while providing initial guidance for 2026 [1] Group 1: Financial Performance - Total assets grew to over $7 billion in 2025, up from $5.2 billion at the end of 2024, largely due to the MPP business [2] - Full-year 2025 earnings per diluted share were $2.11, a 15% increase from $1.83 in 2024 [2] - Return on average assets improved to 1.33% from 1.08%, and return on average tangible common equity rose to 14.43% from 13.94% [2] Group 2: Mortgage Purchase Program (MPP) Highlights - Average MPP balances increased by $410.2 million from the prior quarter, with period-end balances up by $60.1 million [4] - Participations in MPP balances surged to $457.0 million by December 31, 2025, from $37.5 million at September 30, 2025 [5] - The average yield on the MPP business was 6.98% in the quarter, increasing to 7.22% when including fees, despite a 12 basis point decline from the prior quarter [6] Group 3: Residential Lending Performance - Northpointe closed $762.0 million in mortgages during the fourth quarter, an increase from $636.6 million in the prior quarter [6] - The company sold $665.6 million of mortgages in the quarter, representing about 87% of total closings, consistent with previous quarters [6] - 65% of saleable production came from the traditional retail channel, while 35% was from Consumer Direct, with the latter's increase linked to refinancing activity [6]