NORTHPOINTE BANCSHARES INCNPB
NORTHPOINTE BANCSHARES INC Segments Disclosure
Segment Information
Our reportable segments are Retail Banking and MPP, which have been determined based on management’s focus and internal reporting structure. The MPP segment provides a collateralized mortgage purchase facility marketed to independent mortgage bankers nationwide. The Retail Banking segment provides a vast array of financial products and services to consumers nationwide. These include residential mortgages, AIO equity loans, other consumer loans, and loan servicing, as well as various types of deposit products, including checking, savings and time deposit accounts. The residential mortgage loans we originate are directly originated within our branch network or from our consumer direct business, and are typically underwritten to agency and/or third-party standards, and either sold (servicing retained or released) or held on our balance sheet.
Net interest income in each segment reflects our internal funds transfer pricing (“FTP”) methodology, which is designed to capture interest rate and liquidity risk. Under our methodology, average assets, net of deposits, receive a funding charge based on market interest rates of similar duration liabilities. MPP receives an FTP charge and the residual gain is retained within Retail Banking.
Provision (benefit) for credit losses is allocated to MPP based on the cumulative expected loss rate from the Company’s allowance for credit loss process and applied to any change in period end loan balances.
Financial results are presented, to the extent possible, as if each business operated on a standalone basis, and includes expense allocations for corporate overhead services used by the business segments. Shared corporate overhead expenses reside
in Retail Banking but are allocated back to MPP through our expense allocation based on occupancy rates and percentage of time spent supporting the segment.
Results of the Company’s operating segments are regularly reviewed by the Company’s Chief Operating Decision Maker (the “CODM”), the Company’s Chief Executive Officer. More specifically, the CODM analyzes quarterly financial results, including net income, to assess performance and allocate resources. However, the CODM may use other metrics and ad hoc reports on a limited purpose basis as needed.
In evaluating segment performance, the Company primarily evaluates total revenues (net interest income plus noninterest income) and net income before preferred dividends.
The following tables present the operating segment results for the periods presented below (dollars in thousands):
| (Dollars in thousands) | As of or for the Year Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| Retail Banking | MPP | Total | Retail Banking | MPP | Total | ||||||||||||||||||||||||||||||
| Interest income | $ | 190,974 | $ | 189,230 | $ | 380,204 | $ | 204,087 | $ | 113,445 | $ | 317,532 | |||||||||||||||||||||||
| Interest expense | (229,465) | — | (229,465) | (203,317) | — | (203,317) | |||||||||||||||||||||||||||||
| Funds transfer pricing | 121,657 | (121,657) | — | 75,188 | (75,188) | — | |||||||||||||||||||||||||||||
| Net interest income | 83,166 | 67,573 | 150,739 | 75,958 | 38,257 | 114,215 | |||||||||||||||||||||||||||||
| Provision (benefit) for credit losses | 1,412 | 686 | 2,098 | (548) | 220 | (328) | |||||||||||||||||||||||||||||
| Net income after provision | 81,754 | 66,887 | 148,641 | 76,506 | 38,037 | 114,543 | |||||||||||||||||||||||||||||
Noninterest income (1) | 84,958 | 6,022 | 90,980 | 67,505 | 5,418 | 72,923 | |||||||||||||||||||||||||||||
| Salaries and employee benefits | (82,055) | (8,116) | (90,171) | (72,348) | (5,443) | (77,791) | |||||||||||||||||||||||||||||
| Occupancy and equipment | (3,374) | (75) | (3,449) | (4,367) | (87) | (4,454) | |||||||||||||||||||||||||||||
Other noninterest expense (2) | (34,932) | (676) | (35,608) | (31,796) | (549) | (32,345) | |||||||||||||||||||||||||||||
| Noninterest expense | (120,361) | (8,867) | (129,228) | (108,511) | (6,079) | (114,590) | |||||||||||||||||||||||||||||
Expense allocation (3) | 5,294 | (5,294) | — | 3,419 | (3,419) | — | |||||||||||||||||||||||||||||
| Net income before taxes | 51,645 | 58,748 | 110,393 | 38,919 | 33,957 | 72,876 | |||||||||||||||||||||||||||||
| Income tax expense | (12,626) | (14,358) | (26,984) | (9,679) | (8,038) | (17,717) | |||||||||||||||||||||||||||||
| Net income before preferred dividends | $ | 39,019 | $ | 44,390 | $ | 83,409 | $ | 29,240 | $ | 25,919 | $ | 55,159 | |||||||||||||||||||||||
| Average balance sheet assets | $ | 3,579,184 | $ | 2,679,075 | $ | 6,258,259 | $ | 3,703,012 | $ | 1,418,411 | $ | 5,121,423 | |||||||||||||||||||||||
| Period end assets | $ | 3,597,890 | $ | 3,424,935 | $ | 7,022,825 | $ | 3,513,191 | $ | 1,710,820 | $ | 5,224,011 | |||||||||||||||||||||||
(1) Noninterest income for MPP only includes MPP related fees. All other noninterest income is reflected in Retail Banking.
(2) Includes data processing, professional services, office supplies and other miscellaneous expenses.
(3) Reflects corporate overhead expense allocations used by both business segments; primarily consisting of corporate administration, finance, technology, human resources, risk, marketing and occupancy related allocations.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 27, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.