BOCA RATON, Fla., Aug. 06, 2026 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (the "Company") (Nasdaq: NEWT) reports its financial and operating results for the three months ended June 30, 2026.
Financial Highlights for the three months ended June 30, 2026:
- For the three months ended June 30, 2026 ("2Q26"), basic and diluted earnings per share ("EPS") were $0.48 and $0.47 vs. $0.53 and $0.52, respectively, for the three months ended June 30, 2025 ("2Q25").
- Book value per common share ended 2Q26 at $12.64, up Y/Y and Q/Q by 13.8% and 2.3%, respectively.
- Tangible book value per common share1 ended 2Q26 at $12.13, up Y/Y and Q/Q by 15.0% and 2.4%, respectively.
- The efficiency ratio1 was 58.4% for 2Q26 compared to 60.3% for 2Q25.
- Return on average assets (“ROAA”)1 was 1.97% for 2Q26 compared to 2.58% for 2Q25.
- Return on average equity ("ROAE")1 was 13.3% for 2Q26 compared to 17.4% for 2Q25.
- Return on average tangible common equity (“ROTCE”)1 was 15.7% for 2Q26 compared to 19.6% for 2Q25.
Selected Balance Sheet and Other Highlights for 2Q26
- Non-affiliate business deposits at Newtek Bank, N.A. (the "Bank") increased $15 million, or 5% Q/Q, and $103 million, or 47% Y/Y, while core consumer deposits grew $297 million, or 21% Q/Q, and $951 million, or 124% Y/Y.
- Since the acquisition of the Bank in early 2023, roughly 54% of Newtek Bank's business lending clients have opened a business deposit account.
- Insured deposits comprised 81% of deposits as of June 30, 2026..
- Originated $104 million of C&I LA Loans in 2Q26 compared to $78 million in 2Q25.
- Originated $208 million of SBA 7(a) loans in 2Q26 compared to $206 million in 2Q25.
- Originated $49 million of SBA 504 loans in 2Q26 compared to $26 million in 2Q25.
- Originated $41 million and $12 million of CRE and C&I loans HFI in 2Q26 compared to $20 million and $5 million in 1Q25.
Post 2Q26 Events
- On July 1, 2026, the Company paid a dividend on the Company’s outstanding Series B Preferred in the amount of $21.25 per Preferred Share, or $0.53125 per depositary share, which is equivalent to 1/40th of the dividend on the Preferred Shares.
- On July 1, 2026, the Company paid a quarterly cash dividend of $0.19 per share on its outstanding common shares.
Commenting on quarterly operating results, Barry Sloane, CEO, President, and Chairman, said, “We are pleased to have reported basic and diluted EPS of $0.48 and $0.47 for 2Q26, which was within our 2Q26 EPS guidance range of $0.42-$0.52. Profitability remains healthy with 2Q26 ROAA, ROAE and ROTCE of 1.97%, 13.3%, and 15.7%, respectively. We continue to capture operating leverage with assets up almost 50% Y/Y and 2Q26 operating expenses up just 3.6% over 2Q25 operating expenses, which supported a Y/Y improvement in the efficiency ratio from 60.3% for 2Q25 to 58.4% for 2Q26.
“Since acquiring the Bank in early 2023, we have consistently produced strong balance sheet growth with increasing loan balances the primary driver of asset growth. As of the first quarter of 2026, we are originating all loans at the Bank (as opposed to our non-bank subsidiaries) and funding the new loan originations with deposits. I am particularly proud of the deposit gathering engine we have built here at Newtek Bank. We are able to deliver value to both consumer and business deposit customers by providing deposits accounts with attractive rates of interest and without fees, and, because we operate without branches and traditional commercial bankers, we have delivered solid profitability, operating leverage, and efficiency. Total deposits almost doubled Y/Y with business deposits increasing by almost 50% and the consumer deposit book more than doubling.
“Second quarter 2026 loan originations showed contributions from all loan types: C&I LA, SBA 7(a), SBA 504, commercial real estate, and traditional C&I. There are three notable trends I’d like to highlight. First, loans held on Newtek Bank’s balance sheet comprise 86% of the Company’s loans, which is up from 68% one year ago. The shift to the Bank’s balance sheet is a function of C&I LA loans now being originated at the Bank vs. the holding company's non-bank subsidiaries, and loan balances at our legacy non-bank 7(a) lender, Newtek Small Business Finance ("NSBF"), continuing to decline. In fact, the NSBF portfolio represented less than 10% of total loans as of June 30, down from 19% one year earlier. Second, C&I LA loan balances are building on the Bank’s balance sheet. Most of the C&I LA loan growth occurred late in the second quarter, which means the Bank’s interest and net interest income should reflect a full quarter of impact in the third quarter of 2026. And third, as we have discussed in past quarters, we are holding more guaranteed portions of SBA 7(a) loans on our balance sheet than we have in the past, supporting growth in net interest income, which, for 2Q26, climbed 24% Q/Q and 56% Y/Y at the Bank.
“Since 1998, NewtekOne has been dedicated to independent business owners in the United States and has strived to provide business and financial solutions to that important cohort with the intention to make our independent business owner clients more successful. We believe we are succeeding at that mission and are one of the top firms serving independent business owners in the U.S. In fact, according to SBA data, since 2020, as one of the more active lenders in the 7(a) loan program, we have supported roughly 280,000 jobs, ranking second of all lenders in the 7(a) program for jobs supported.”
Mr. Sloane concluded, "After three and a half years of operating as a bank holding company we are proud of the business model we have created, a technologically enabled bank that from a competitive standpoint is hard to find. Rather than being viewed as simply different, we have found recently that our business model emphasizing our digital account opening, real time payments platform, the Newtek Advantage® business portal, the NewTracker® referral system, and frictionless lending platform, all for independent business owners, is getting noticed by the banking industry as being a model to envy. However, as we continue to execute our business model, the mix of revenue and business lines at the Bank is evolving. This will involve more net interest income by holding more loans on balance sheet and less revenue from gain on sale of loans, and, as a result, our current guidance going forward is being re-evaluated."
Second Quarter 2026 Conference Call and Webcast
A conference call to discuss the second quarter 2026 financial and operating results will be hosted by Barry Sloane, Chief Executive Officer, President and Chairman, and Frank M. DeMaria, Chief Financial Officer, today, Thursday, August 6, 2026, at 4:30 p.m. ET.
Please note, to attend the conference call or webcast, participants should register online at NewtekOne, Inc. Second Quarter 2026 Financial Results Conference Call. To receive a dial-in number, participants are requested to register at a minimum 15 minutes before the start of the call. The corresponding presentation will be available in the ‘Events & Presentations’ section of the Investor Relations portion of NewtekOne's website at NewtekOne, Inc. Second Quarter 2026 Financial Results Conference Call. A replay of the call with the corresponding presentation will be available on NewtekOne's website shortly following the live presentation and will be available for a period of one year.
Note Regarding Dividend Payments
Amount and timing of dividends, if any, remain subject to the discretion of the Company's Board of Directors.
About NewtekOne, Inc.
NewtekOne®, Your Business Solutions Company®, is a financial holding company, which along with its bank and non-bank consolidated subsidiaries (collectively, “NewtekOne”), provides a wide range of business and financial solutions under the Newtek® brand to independent business owners. Since 1999, NewtekOne has provided state-of-the-art, cost-efficient products and services and efficient business strategies to independent business owners across all 50 states to help them grow their sales, control their expenses, and reduce their risk.
NewtekOne’s and its subsidiaries’ business and financial solutions include: banking (Newtek Bank, N.A.), Business Lending, SBA Lending Solutions, Electronic Payment Processing, Accounts Receivable Financing & Inventory Financing, Insurance Solutions and Payroll and Benefits Solutions. In addition, NewtekOne offers its clients the Technology Solutions (Cloud Computing, Data Backup, Storage and Retrieval, IT Consulting and Web Services) provided by Intelligent Protection Management Corp. (IPM.com).
Newtek®, NewtekOne®, Newtek Bank®, National Association, Your Business Solutions Company®, One Solution for All Your Business Needs® and Newtek Advantage® are registered trademarks of NewtekOne, Inc.
Note Regarding Forward-Looking Statements
Certain statements in this press release are “forward-looking statements” within the meaning of the rules and regulations of the Private Securities Litigation and Reform Act of 1995. Information regarding the Company’s assets under supervision, capital ratios, risk-weighted assets, supplementary leverage ratio and balance sheet data consists of preliminary estimates and are subject to change with our filings with regulatory agencies and the filing of the Company's Form 10-Q for the period ended June 30, 2026. These statements and other forward-looking statements herein are based on the current beliefs and expectations of NewtekOne's management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. See “Note Regarding Forward-Looking Statements” and the sections entitled “Risk Factors” in our filings with the Securities and Exchange Commission which are available on NewtekOne's website (https://investor.newtekbusinessservices.com/sec-filings) and on the Securities and Exchange Commission’s website (www.sec.gov). Any forward-looking statements made by or on behalf of NewtekOne speak only as to the date they are made, and NewtekOne does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
SOURCE: NewtekOne, Inc.
Investor Relations & Public Relations
Contact: Bryce Rowe
Telephone: (212) 273-8292 / browe@newtekone.com
| NEWTEKONE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In Thousands, except for Per Share Data) | |||||||
| June 30, 2026 | December 31, 2025 | ||||||
| (unaudited) | |||||||
| ASSETS | |||||||
| Cash and due from banks | $ | 5,190 | $ | 4,196 | |||
| Restricted cash (amounts related to VIEs of $6.3 million and $6.3 million, respectively) | 22,744 | 26,477 | |||||
| Interest bearing deposits in banks | 367,073 | 279,618 | |||||
| Total cash and cash equivalents | 395,007 | 310,291 | |||||
| Debt securities available-for-sale, at fair value | 15,139 | 16,829 | |||||
| Loans held for sale, at fair value | 500,783 | 971,837 | |||||
| Loans held for sale, at LCM | 20,473 | 26,532 | |||||
| Loans held for investment, at fair value (amounts related to VIEs of $177.1 million and $198.4 million, respectively) | 721,568 | 281,198 | |||||
| Loans held for investment, at amortized cost, net of deferred fees and costs | 1,139,537 | 896,689 | |||||
| Allowance for credit losses | (52,715 | ) | (45,226 | ) | |||
| Loans held for investment, at amortized cost, net | 1,086,822 | 851,463 | |||||
| Federal Home Loan Bank and Federal Reserve Bank stock | 4,548 | 4,234 | |||||
| Settlement receivable | — | 438 | |||||
| Residuals in securitizations, at fair value | 204,001 | 76,701 | |||||
| Joint ventures and other non-control investments, at fair value (cost of $36,294 and $36,692), respectively | 43,766 | 47,719 | |||||
| Goodwill and intangibles | 14,526 | 14,597 | |||||
| Right of use assets | 2,574 | 2,790 | |||||
| Deferred tax asset, net | 10,768 | — | |||||
| Servicing assets, at fair value | 12,456 | 15,358 | |||||
| Servicing assets, at LCM | 39,500 | 29,564 | |||||
| Other assets | 112,950 | 95,268 | |||||
| Total assets | $ | 3,184,881 | $ | 2,744,819 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Liabilities: | |||||||
| Deposits: | |||||||
| Noninterest-bearing | $ | 56,270 | $ | 53,873 | |||
| Interest-bearing | 2,094,232 | 1,364,535 | |||||
| Total deposits | 2,150,502 | 1,418,408 | |||||
| Borrowings (including borrowings of VIEs of $105.1 million and $127.1 million, respectively) | 554,192 | 819,888 | |||||
| Lease liabilities | 2,648 | 2,874 | |||||
| Deferred tax liabilities, net | — | 10,728 | |||||
| Due to participants | 21,117 | 52,389 | |||||
| Accounts payable, accrued expenses and other liabilities | 43,049 | 42,962 | |||||
| Total liabilities | 2,771,508 | 2,347,249 | |||||
| Shareholders' Equity: | |||||||
| Series B Preferred stock (par value $0.02 per share; 54 authorized, 50 issued and outstanding) | 48,181 | 48,181 | |||||
| Common stock (par value $0.02 per share; authorized 199,980 shares, 28,899 and 28,658 issued and outstanding, respectively) | 579 | 573 | |||||
| Retained earnings | 109,899 | 94,990 | |||||
| Additional paid-in capital | 254,719 | 253,830 | |||||
| Accumulated other comprehensive loss, net of income taxes | (5 | ) | (4 | ) | |||
| Total shareholders' equity | 413,373 | 397,570 | |||||
| Total liabilities and shareholders' equity | $ | 3,184,881 | $ | 2,744,819 | |||
| NEWTEKONE, INC. AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
| (In Thousands, except for Per Share Data) | |||||||||||
| Three Months Ended | |||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |||||||||
| (unaudited) | (unaudited) | (unaudited) | |||||||||
| Interest income | |||||||||||
| Debt securities available-for-sale | $ | 217 | $ | 216 | $ | 214 | |||||
| Loans and fees on loans | 40,335 | 37,702 | 33,354 | ||||||||
| Other interest earning assets | 5,742 | 8,323 | 2,950 | ||||||||
| Total interest income | 46,294 | 46,241 | 36,518 | ||||||||
| Interest expense | |||||||||||
| Deposits | 18,599 | 15,270 | 9,357 | ||||||||
| Notes and securitizations | 8,846 | 9,402 | 10,908 | ||||||||
| Bank and FHLB borrowings | 3,885 | 4,343 | 2,330 | ||||||||
| Total interest expense | 31,330 | 29,015 | 22,595 | ||||||||
| Net interest income | 14,964 | 17,226 | 13,923 | ||||||||
| Provision for credit losses | 12,114 | 9,608 | 9,117 | ||||||||
| Net interest income after provision for credit losses | 2,850 | 7,618 | 4,806 | ||||||||
| Noninterest income | |||||||||||
| Dividend income | 485 | 450 | 600 | ||||||||
| Net loss on loan servicing assets | (5,249 | ) | (6,197 | ) | (4,355 | ) | |||||
| Servicing income | 5,003 | 6,385 | 6,054 | ||||||||
| Net gains on sales of loans | 11,226 | 26,682 | 15,526 | ||||||||
| Net gain on residuals in securitizations | 2,006 | 56,144 | 31,465 | ||||||||
| Net (loss) gain on loans under the fair value option | 20,654 | (49,578 | ) | (11,761 | ) | ||||||
| Electronic payment processing income | 10,852 | 10,404 | 11,739 | ||||||||
| Other noninterest income | 15,140 | 9,441 | 7,007 | ||||||||
| Total noninterest income | 60,117 | 53,731 | 56,275 | ||||||||
| Noninterest expense | |||||||||||
| Salaries and employee benefits expense | 23,234 | 23,096 | 23,135 | ||||||||
| Electronic payment processing expense | 4,719 | 4,121 | 4,428 | ||||||||
| Professional services expense | 3,181 | 2,603 | 4,304 | ||||||||
| Other loan origination and maintenance expense | 4,909 | 6,227 | 3,287 | ||||||||
| Technology expense | 2,921 | 2,953 | 2,996 | ||||||||
| Other general and administrative costs | 4,853 | 5,263 | 4,159 | ||||||||
| Total noninterest expense | 43,817 | 44,263 | 42,309 | ||||||||
| Net income before taxes | 19,150 | 17,086 | 18,772 | ||||||||
| Income tax expense | 4,539 | 3,685 | 5,069 | ||||||||
| Net income | 14,611 | 13,401 | 13,703 | ||||||||
| Dividends to preferred shareholders | (1,063 | ) | (1,063 | ) | (400 | ) | |||||
| Net income available to common shareholders | $ | 13,548 | $ | 12,338 | $ | 13,303 | |||||
| Earnings per Common Share: | |||||||||||
| Basic | $ | 0.48 | $ | 0.43 | $ | 0.53 | |||||
| Diluted | $ | 0.47 | $ | 0.43 | $ | 0.52 | |||||
Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)
The information provided below presents a reconciliation of each of our non-GAAP financial measures to the most directly comparable GAAP financial measure. Ratios for three month periods ended have been annualized based on calendar days.
| NewtekOne, Inc. | As of and for the three months ended | ||||||||||
| (dollars and number of shares in thousands) | June 30, 2026 | March 31, 2026 | June 30, 2025 | ||||||||
| Return on Average Equity and Tangible Common Equity | |||||||||||
| Numerator: Net Income (GAAP) | $ | 14,611 | $ | 13,401 | $ | 13,703 | |||||
| Dividend on preferred equity | (1,063 | ) | (1,063 | ) | (400 | ) | |||||
| Numerator: Adjusted net income | 13,548 | 12,338 | 13,303 | ||||||||
| Average Total Shareholders' Equity1 | 409,033 | 401,018 | 307,256 | ||||||||
| Return on Average Equity1 | 13.3 | % | 12.5 | % | 17.4 | % | |||||
| Deduct: Preferred Stock (GAAP) | 48,181 | 48,181 | 19,738 | ||||||||
| Average Common Shareholders' Equity1 | 360,852 | 352,837 | 287,518 | ||||||||
| Return on Average Common Equity | 14.3 | % | 13.6 | % | 17.9 | % | |||||
| Deduct: Average Goodwill and Intangibles1 | 14,561 | 14,579 | 14,692 | ||||||||
| Denominator: Average Tangible Common Equity1 | $ | 346,291 | $ | 338,258 | $ | 272,826 | |||||
| Return on Average Tangible Common Equity1 | 15.7 | % | 14.8 | % | 19.6 | % | |||||
| Return on Average Assets | |||||||||||
| Numerator: Net Income (GAAP) | $ | 14,611 | $ | 13,401 | $ | 13,703 | |||||
| Denominator: Average Assets1 | 2,971,097 | 2,778,792 | 2,131,477 | ||||||||
| Return on Average Assets1 | 1.97 | % | 1.96 | % | 2.58 | % | |||||
| Efficiency Ratio | |||||||||||
| Numerator: Non-Interest Expense (GAAP) | $ | 43,817 | $ | 44,263 | $ | 42,309 | |||||
| Net Interest Income (GAAP) | 14,964 | 17,226 | 13,923 | ||||||||
| Non-Interest Income (GAAP) | 60,117 | 53,731 | 56,275 | ||||||||
| Denominator: Total Income | $ | 75,081 | $ | 70,957 | $ | 70,198 | |||||
| Efficiency Ratio1 | 58.4 | % | 62.4 | % | 60.3 | % | |||||
| Tangible Book Value Per Share | |||||||||||
| Total Shareholders' Equity (GAAP) | $ | 413,373 | $ | 404,691 | $ | 312,180 | |||||
| Deduct: Goodwill and Intangibles (GAAP) | 14,526 | 14,561 | 14,672 | ||||||||
| Numerator: Total Tangible Book Value1 | $ | 398,847 | $ | 390,130 | $ | 297,508 | |||||
| Denominator: Total Number of Shares Outstanding | 28,899 | 28,846 | 26,317 | ||||||||
| Tangible Book Value Per Share1 | $ | 13.80 | $ | 13.52 | $ | 11.30 | |||||
| Tangible Book Value Per Common Share | |||||||||||
| Total Tangible Book Value1 | $ | 398,847 | $ | 390,130 | $ | 297,508 | |||||
| Deduct: Preferred Stock (GAAP) | 48,181 | 48,181 | 19,738 | ||||||||
| Numerator: Tangible Common Book Value1 | $ | 350,666 | $ | 341,949 | $ | 277,770 | |||||
| Denominator: Total Number of Shares Outstanding | 28,899 | 28,846 | 26,317 | ||||||||
| Tangible Book Value Per Common Share1 | $ | 12.13 | $ | 11.85 | $ | 10.55 | |||||
| 1Non-GAAP financial measure | |||||||||||
