2026 EPS Guidance Range of $1.70-$1.80 Maintained
BOCA RATON, Fla., Oct. 28, 2026 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (the "Company") (Nasdaq: NEWT) reports its financial and operating results for the three months ended September 30, 2026.
Financial Highlights for the three months ended September 30, 2026 :
-
For the three months ended September 30, 2026 ("3Q26"), basic and diluted earnings per share ("EPS") were $0.34 and $0.34 vs. $0.68 and $0.67, respectively, for the three months ended September 30, 2025 ("3Q25").
-
Book value per common share ended 3Q26 at $12.80, up Y/Y and Q/Q by 9.2% and 1.3%, respectively.
-
Tangible book value per common share1 ended 3Q26 at $12.30, up Y/Y and Q/Q by 9.6% and 1.4%, respectively.
-
The efficiency ratio1 was 58.7% for 3Q26 compared to 56.3% for 3Q25.
-
Return on average assets ("ROAA")1 was 1.30% for 3Q26 compared to 3.14% for 3Q25.
-
Return on average equity ("ROAE")1 was 9.2% for 3Q26 compared to 20.4% for 3Q25.
-
Return on average tangible common equity ("ROTCE")1 was 10.8% for 3Q26 compared to 24.0% for 3Q25.
Selected Balance Sheet and Other Highlights for 3Q26
-
Non-affiliate business deposits at Newtek Bank, N.A. (the "Bank") increased $13 million, or 4% Q/Q, and $109 million, or 48% Y/Y, while core consumer deposits grew $231 million, or 13% Q/Q, and $1.1 billion, or 126% Y/Y.
-
Since the acquisition of the Bank in early 2023, roughly 62% of Newtek Bank's business lending clients have opened a business deposit account.
-
Insured deposits comprised 79% of deposits as of September 30, 2026.
-
Originated $75 million of C&I LA Loans in 3Q26 compared to $104 million in 3Q25.
-
Originated $215 million of SBA 7(a) loans in 3Q26 compared to $187 million in 3Q25.
-
Originated $45 million of SBA 504 loans in 3Q26 compared to $28 million in 3Q25.
-
Originated $28 million and $23 million of CRE and C&I loans HFI in 3Q26 compared to $18 million and $19 million in 3Q25.
Post 3Q26 Events
-
On October 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 October 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 reported 3Q26 basic and diluted EPS of $0.34 and are comfortable with our previously issued 2026 EPS guidance range of $1.70-$1.80. We were pleased to see momentum from the first half of 2026 continue into the third quarter. Deposit balances more than doubled on a year-over-year basis, increasing by $1.3 billion to end 3Q26 at $2.5 billion,while the number of Newtek Bank deposit accounts exceeded 47,000 accounts compared to roughly 21,800 accounts at the end of 3Q25 and approximately 1,500 deposit accounts when we acquired the Bank in January 2023. We believe both consumer and business deposit customers are attracted to Newtek Bank because of the value we are delivering to them through attractive rates of interest, no fees, frictionless digital account opening, and on-demand, on-camera support from human beings in the United States 24/7/365; Newtek Bank business customers also get access to our online business portal, The Newtek Advantage®, to help them manage their businesses more effectively and efficiently. Both NewtekOne and Newtek Bank are highly rated by Trustpilot with 4.9 stars and 4.5 stars out of 5.0, respectively, while the Bank's rating of four stars on depositaccounts.com compares favorably to ratings of less than two stars for several of the largest banks in the U.S.
"The deposit gathering engine is crucial to fund the loan growth we are generating. For the first nine months of 2026, funded loans totaled approximately $1.2 billion, up roughly 12% compared to the $1.1 billion for the first nine months of 2025; SBA 7(a) and longer-amortizing C&I ("C&I LA") loan originations comprised 56% and 20%, respectively, of year-to-date ("YTD") originations. Loans on balance sheet ended 3Q26 at over $2.7 billion, up 46% compared to $1.9 billion for 3Q25. Importantly, for the Small Business Administration's ("SBA") fiscal year ending September 30, 2026, we reestablished ourselves as the top originator of SBA 7(a) loans, ranking number one by loan approval count and number two by dollars of loan approvals, which shows that our commitment to and relationship with the independent business owner community continues to flourish. One more item to note on the topic of loans: we anticipate bringing a securitization backed by C&I LA loans to market in the first quarter of 2027, which would represent our fifth securitization backed by C&I LA loans and our 18th overall. Importantly, none of the previous 17 securitizations have been downgraded or been put on credit watch.
"As we discussed on our second quarter 2026 conference call, we are holding more guaranteed portions of SBA 7(a) loans on our balance sheet than we have in the past, which is having the anticipated effect of generating net interest income growth and transitioning the mix of revenue away from gain on sale income to recurring net interest income. 3Q26 net interest income of $19 million climbed 26% Q/Q and 30% Y/Y. Net interest income for the first nine months of 2026 increased 20% over the first nine months of 2025 and comprised nearly 23.5% of YTD revenue compared to 20.1% for the first nine months of 2025.
"Since acquiring the Bank in early 2023, we have consistently maintained a healthy pace of balance sheet growth, but because we built the Company's operating infrastructure to scale, the pace of operating expense growth has been more moderate, allowing us to capture operating leverage with loan and deposit growth and to demonstrate attractive operating efficiency. Relative to 3Q25, 3Q26 operating expenses were flat against asset growth of 47%; YTD operating expense growth was roughly 4%. We continue to be pleased with our operating efficiency ratio, which came in at 58.7% for 3Q26 and 59.8% for the first nine months of 2026.
"Our operating model's ability to capture operating leverage is rooted in the technology we have developed and integrated over the last 28 years. NewtekOne was founded in 1998 to provide independent business owners in the United States with business and financial solutions to help them grow revenue, reduce costs, and reduce risk. Today, we are capable of offering our independent business owner clients five fully digital solutions without the use of traditional bankers, brokers, or business development officers through one integrated platform, and we aim to deliver those solutions in an efficient, frictionless manner. Instead of having to chase down a relationship manager or go into a branch, NewtekOne's customers can easily reach our customer service representatives who are on-demand and on-camera 24/7/365 and based in the United States. And because we built and own the integrated platform with our patented NewTracker® operating system at the center of the platform, it is constantly evolving to enhance the customer experience.
"In the last quarter alone, we launched the automated integration of a comprehensive offering of insurance products into our loan origination platform, which provides borrowers with instant access to bindable quotes on lender-compliant insurance policies, thereby satisfying loan closing requirements and enabling an expedited loan closing process. Using data submitted in the loan application, borrower applicants are automatically presented with an offering of an insurance package that includes key person life insurance policies of up to $3 million, assigned to the loan, as well as flood insurance coverage, where applicable, and property & casualty insurance. We also expanded our client service platform to include Glia, which adds advanced digital engagement and artificial intelligence to NewtekOne's highly rated 24/7/365 client support model to make that support model substantially more informed and effective. In addition, we broadened the digital ecosystem available to our clients by expanding connectivity between Newtek Bank accounts and the accounting and business applications independent business owners rely on to manage their businesses. Lastly, we added to our real time payments platform with Zelle® for eligible small business banking clients.
"Almost four years ago, we converted to a bank holding company to round out the ecosystem we developed for our target customers: independent business owners. We are extremely proud of having built a technologically enabled bank with a business model that is unlike 99% of the banking industry. Our operating model emphasizes digital account opening, an automated, frictionless loan origination platform, automated lead generation, little-to-no cost of customer acquisition, real time payments/money movement, wider lending margins, and a proprietary, internally-developed technology stack highlighted by the patented NewTracker® operating system and the patent-pending Newtek Advantage® online business portal."
Mr. Sloane concluded, "We believe there is tremendous value in the platform we have built and the technology we have developed, and we believe that value is not currently reflected in our market capitalization. In fact, we believe that the proposed $340 million acquisition of Bluevine Inc. by Valley National Bancorp, which was announced at the end of September, is one example of value being ascribed to a fully digital platform of business and financial solutions for the independent business owner community. We are working hard to have NewtekOne's value properly recognized and exploring all strategic alternatives intended to help the market better recognize that value."
Third Quarter 2026 Conference Call and Webcast
A conference call to discuss the third 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, Wednesday, October 28, 2026, at 4:30 p.m. ET.
Please note, to attend the conference call or webcast, participants should register online at NewtekOne, Inc. Third 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. Third 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 September 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)
September 30, 2026
December 31, 2025
(unaudited)
ASSETS
Cash and due from banks
$
3,785
$
4,196
Restricted cash (amounts related to VIEs of $6.3 million and $6.3 million, respectively)
23,172
26,477
Interest bearing deposits in banks
277,506
279,618
Total cash and cash equivalents
304,463
310,291
Debt securities available-for-sale, at fair value
7,448
16,829
Loans held for sale, at fair value
654,265
971,837
Loans held for sale, at LCM
18,194
26,532
Loans held for investment, at fair value (amounts related to VIEs of $166.7 million and $198.4 million, respectively)
823,742
281,198
Loans held for investment, at amortized cost, net of deferred fees and costs
1,309,278
896,689
Allowance for credit losses
(57,052
)
(45,226
)
Loans held for investment, at amortized cost, net
1,252,226
851,463
Federal Home Loan Bank and Federal Reserve Bank stock
4,468
4,234
Settlement receivable
—
438
Residuals in securitizations, at fair value
205,501
76,701
Joint ventures and other non-control investments, at fair value (cost of $36,294 and $36,692), respectively
43,166
47,719
Goodwill and intangibles
14,493
14,597
Right of use assets
2,463
2,790
Deferred tax asset, net
14,054
—
Servicing assets, at fair value
14,811
15,358
Servicing assets, at LCM
35,803
29,564
Other assets
130,915
95,268
Total assets
$
3,526,012
$
2,744,819
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing
$
68,003
$
53,873
Interest-bearing
2,443,216
1,364,535
Total deposits
2,511,219
1,418,408
Borrowings (including borrowings of VIEs of $96.4 million and $127.1 million, respectively)
539,465
819,888
Lease liabilities
2,535
2,874
Deferred tax liabilities, net
—
10,728
Due to participants
19,338
52,389
Accounts payable, accrued expenses and other liabilities
35,331
42,962
Total liabilities
3,107,888
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, 28,892 and 28,658 issued and outstanding, respectively)
579
573
Retained earnings
114,039
94,990
Additional paid-in capital
255,327
253,830
Accumulated other comprehensive loss, net of income taxes
(2
)
(4
)
Total shareholders' equity
418,124
397,570
Total liabilities and shareholders' equity
$
3,526,012
$
2,744,819
NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, except for Per Share Data)
Three Months Ended
September 30, 2026
June 30, 2026
September 30, 2025
(unaudited)
(unaudited)
(unaudited)
Interest income
Debt securities available-for-sale
$
172
$
217
$
200
Loans and fees on loans
48,467
40,335
36,376
Other interest earning assets
4,717
5,742
2,518
Total interest income
53,356
46,294
39,094
Interest expense
Deposits
22,317
18,599
10,879
Notes and securitizations
8,715
8,846
10,710
Bank and FHLB borrowings
3,432
3,885
2,956
Total interest expense
34,464
31,330
24,545
Net interest income
18,892
14,964
14,549
Provision for credit losses
15,393
12,114
7,712
Net interest income after provision for credit losses
3,499
2,850
6,837
Noninterest income
Dividend income
1,005
485
425
Net loss on loan servicing assets
(1,342
)
(5,249
)
(4,493
)
Servicing income
5,285
5,003
6,076
Net gains on sales of loans
32
11,226
9,563
Net gain (loss) on residuals in securitizations
1,500
2,006
(1,450
)
Net gain on loans under the fair value option
19,986
20,654
29,250
Electronic payment processing income
10,180
10,852
11,053
Other noninterest income
16,247
15,140
9,964
Total noninterest income
52,893
60,117
60,388
Noninterest expense
Salaries and employee benefits expense
21,224
23,234
19,973
Electronic payment processing expense
4,407
4,719
4,429
Professional services expense
3,935
3,181
3,793
Other loan origination and maintenance expense
5,536
4,909
6,764
Technology expense
2,961
2,921
3,092
Other general and administrative costs
4,109
4,853
3,929
Total noninterest expense
42,172
43,817
42,159
Net income before taxes
14,220
19,150
25,066
Income tax expense
3,516
4,539
7,165
Net income
10,704
14,611
17,901
Dividends to preferred shareholders
(1,063
)
(1,063
)
(472
)
Net income available to common shareholders
$
9,641
$
13,548
$
17,429
Earnings per Common Share:
Basic
$
0.34
$
0.48
$
0.68
Diluted
$
0.34
$
0.47
$
0.67
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)
September 30, 2026
June 30, 2026
September 30, 2025
Return on Average Equity and Tangible Common Equity
Numerator: Net Income (GAAP)
$10,704
$14,611
$17,901
Dividend on preferred equity
(1,063)
(1,063)
(472)
Numerator: Adjusted net income
9,641
13,548
17,429
Average Total Shareholders' Equity1
415,748
409,033
339,077
Return on Average Equity 1
9.2%
13.3%
20.4%
Deduct: Preferred Stock (GAAP)
48,181
48,181
35,802
Average Common Shareholders' Equity1
367,567
360,852
303,275
Return on Average Common Equity
10.2%
14.3%
21.0%
Deduct: Average Goodwill and Intangibles1
14,510
14,544
14,653
Denominator: Average Tangible Common Equity1
$353,057
$346,308
$288,622
Return on Average Tangible Common Equity 1
10.8%
15.7%
24.0%
Return on Average Assets
Numerator: Net Income (GAAP)
$10,704
$14,611
$17,901
Denominator: Average Assets1
3,270,779
2,971,097
2,262,678
Return on Average Assets 1
1.30%
1.97%
3.14%
Efficiency Ratio
Numerator: Non-Interest Expense (GAAP)
$42,172
$43,817
$42,159
Net Interest Income (GAAP)
18,892
14,964
14,549
Non-Interest Income (GAAP)
52,893
60,117
60,388
Denominator: Total Income
$71,785
$75,081
$74,937
Efficiency Ratio 1
58.7%
58.4%
56.3%
Tangible Book Value Per Share
Total Shareholders' Equity (GAAP)
$418,124
$413,373
$386,707
Deduct: Goodwill and Intangibles (GAAP)
14,493
14,526
14,633
Numerator: Total Tangible Book Value1
$403,631
$398,847
$372,074
Denominator: Total Number of Shares Outstanding
28,892
28,899
28,876
Tangible Book Value Per Share 1
$13.97
$13.80
$12.89
Tangible Book Value Per Common Share
Total Tangible Book Value1
$403,631
$398,847
$372,074
Deduct: Preferred Stock (GAAP)
48,181
48,181
48,181
Numerator: Tangible Common Book Value1
$355,450
$350,666
$323,893
Denominator: Total Number of Shares Outstanding
28,892
28,899
28,876
Tangible Book Value Per Common Share 1
$12.30
$12.13
$11.22
1Non-GAAP financial measure
