Overview

• US mortgage lender's Q2 net income and EPS rose yr/yr but dipped from prior qtr

• Net interest income increased yr/yr, driven by growth in interest-earning assets

• Company saw continued loan growth and stable asset quality with low net charge-offs

Outlook

• Company did not provide specific guidance for the current quarter or full year

Result Drivers

• LOAN PORTFOLIO GROWTH - Growth in MPP and AIO loan balances drove increases in average interest-earning assets and overall loan portfolio, per company

• NET INTEREST MARGIN PRESSURE - Net interest margin declined due to lower yields on MPP balances and a decrease in SOFR, company said

• HIGHER COMPENSATION EXPENSES - Salaries and benefits expense increased, driven by higher variable compensation on mortgage production, company said

Company press release: ID:nBw5jT7m6a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 EPS		$0.60
Q2 Net Income		$21.75 mln
Q2 Net Interest Income		$42.42 mln
Q2 Provision for Credit Losses		$264,000

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "hold."

• Wall Street's median 12-month price target for Northpointe Bancshares Inc is $22.00, about 17.6% above its July 21 closing price of $18.71

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• July 21 - Bridgewater Bancshares Q2 adjusted EPS meets estimates as net interest income rises on loan growth

• July 21 - FFB Bancorp's Q2 net income falls on interest margin pressure

• July 21 - White River Bancshares' Q2 profit rises as interest margin expands

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