Employers
Northpointe Bancshares, the Grand Rapids, Michigan, parent of Northpointe Bank, plans to exit its retail and consumer direct mortgage origination businesses and expects to pay between $6 million and $7 million in restructuring costs, mostly for severance and employee transition, the company disclosed Tuesday, Oct. 20.
In a filing with the Securities and Exchange Commission, the company said its boards approved the exit plan on Oct. 18. Northpointe has signed a non-binding letter of intent to sell the two lending channels, which it calls distributed retail and consumer direct, to CMG Financial and its affiliates.
What workers know so far
The company has not said how many employees are affected. The filing says the restructuring charges are “comprised primarily of cash expenditures related to severance and employee transition related expenses,” and it refers to the change as a workforce reduction. It also lists an impairment charge of about $800,000 tied to an earlier acquisition of a mortgage team. Northpointe expects to record most of the charges in the fourth quarter.
Chief Executive Chuck Williams pointed to CMG as a possible landing spot for the lending staff. “We believe CMG would be a strong home for our origination team and a constructive path for our customers, referral partners and team members,” he said in the earnings release. The company said loans already in process will continue to close and that it “will provide support to the affected team members.”
None of this is final. The CMG letter of intent is non-binding, and a deal still requires due diligence, a definitive agreement and customary closing conditions. Northpointe said it expects a transaction to close by the end of 2026. In the risk section of its earnings materials, the company said that if the sale is not completed it may pursue “a wind-down or other strategic alternative” for the two channels, which could bring additional costs. The filing does not say whether CMG would offer jobs to all, some or none of the affected employees.
How big the mortgage operation is
Northpointe’s most recent annual report gives a sense of scale. As of Dec. 31, 2025, the company had 483 full-time and eight part-time employees. It described its residential lending business as operating through consumer direct and traditional retail channels, with 122 mortgage originators across 25 states, and said it ran loan production offices in 25 cities in 15 states, supported by a central operations center in Grand Rapids. Those figures are from last year and do not indicate how many positions the exit will affect.
Why the bank is pulling back
Williams said the decision reflects “today’s economic and operating environment, and the continued evolution of the mortgage distribution channels.” The company will focus on businesses it says have the strongest competitive advantages: its Mortgage Purchase Program, specialty servicing and digital banking. The bank described itself in its annual report as one of the largest providers of mortgage warehouse financing.
The announcement came alongside weaker quarterly results. Northpointe reported third-quarter net income to common stockholders of $13.9 million, or 39 cents a diluted share, down from $20.1 million a year earlier. Results were hurt by fair value declines driven by higher long-term interest rates and by $3.1 million in losses from what the company called an isolated external deposit fraud at its retail banking center.
Salaries and benefits expense fell $3.1 million from the second quarter, which the company attributed mainly to lower variable compensation on mortgage production and lower bonus and incentive pay. Compared with a year earlier, the decline also reflected lower base salaries.
Northpointe said more details on timing, restructuring charges and expected savings would be provided on its earnings call on Wednesday, Oct. 21. For employees in the affected lending channels, the key open questions are how many roles are eliminated and whether a completed sale to CMG carries jobs over.
Sources
- Northpointe Bancshares, Inc., Form 8-K (Items 2.02, 2.05, 7.01), U.S. Securities and Exchange Commission, October 20, 2026. https://www.sec.gov/Archives/edgar/data/1336706/000133670626000072/npb-20261020.htm
- Northpointe Bancshares, Inc., “Northpointe Bancshares, Inc. Reports Third Quarter 2026 Results,” Exhibit 99.1, October 20, 2026. https://www.sec.gov/Archives/edgar/data/1336706/000133670626000072/npb-202609x8kxexx991.htm
- Northpointe Bancshares, Inc., Form 10-K for the fiscal year ended December 31, 2025, U.S. Securities and Exchange Commission, March 27, 2026. https://www.sec.gov/Archives/edgar/data/1336706/000133670626000020/npb-20251231.htm
Featured photo: Downtown Grand Rapids, Michigan, at dusk, January 22, 2020. Representative image; not a Northpointe Bank office. Photo: Chc1088, via Wikimedia Commons (CC BY-SA 4.0). Cropped from the original.
