Newtekone, Inc.NASDAQ: NEWT

NewtekOne, Inc. Reports 3Q25 and Year-to-Date 2025 Basic and Diluted EPS of $0.68 and $0.67 and $1.57 and $1.54

Year-over-Year Quarterly and Year-to-Date Diluted EPS Growth Approximate 49% and 22%

BOCA RATON, Fla., Oct. 29, 2025 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (the "Company") (Nasdaq: NEWT) reports its financial and operating results for the three and nine month periods ended September 30, 2025.

Financial Highlights for the three and nine months ended September 30, 2025:

  • For the three months ended September 30, 2025 ("3Q25"), basic and diluted earnings per share ("EPS") were $0.68 and $0.67, respectively, vs. $0.45 and $0.45, respectively, for the three months ended September 30, 2024 ("3Q24"), reflecting Y/Y increases of 51% and 49%, respectively.

  • For the nine months ended September 30, 2025 ("YTD25"), basic and diluted EPS were $1.57 and $1.54, respectively, vs. $1.26 and $1.26, respectively, for the nine months ended September 30, 2024 ("YTD24"), reflecting Y/Y increases of 25% and 22%, respectively.

  • Book value per common share ended 3Q25 at $11.72, up Y/Y and Q/Q by 16.4% and 5.5%, respectively.

  • Tangible book value per common share1 ended 3Q25 at $11.22, up Y/Y and Q/Q by 25.6% and 6.4%, respectively.

  • Total revenue, defined as the sum of net interest income and noninterest income, was $74.9 million for 3Q25, up 19.3% over $62.8 million for 3Q24. Total revenue was $211.5 million for YTD25, up 16.0% over $182.3 million for YTD24.

  • Net income before taxes for 3Q25 was approximately $25.1 million, up 47.0% Y/Y from $17.1 million for 3Q24. Net income before taxes for YTD25 was approximately $55.5 million, up 23.5% from $44.9 million for YTD24.

  • Pre-provision net revenue ("PPNR")1,2 for 3Q25 was approximately $32.8 million, an increase of 36.7% from $24.0 million for 3Q24. PPNR for YTD25 was approximately $85.8 million, an increase of 39.1% from $61.7 million for YTD24.

  • The efficiency ratio1 was 56.3% for 3Q25, an improvement from 61.8% for 3Q24.

  • Return on average assets (“ROAA”)1 was 3.06% for 3Q25.

  • Return on average equity ("ROAE")1 was 20.4% for 3Q25.

  • Return on average tangible common equity (“ROTCE”)1 was 23.7% for 3Q25.

  • Pre-provision return on average assets ("PPROA")1 was 5.75% for 3Q25.

_______________
1  Non-GAAP financial measure; see "Reconciliation of GAAP to Non-GAAP Financial Measures" below for a reconciliation and additional information on non-GAAP measures.
2  PPNR is a non-GAAP metric calculated based on total net revenue less non-interest expense before adjusting for the provision for credit losses for the period. Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.

Selected Balance Sheet and Other Highlights for 3Q25

  • Raised $30 million of Common Equity Tier 1 (CET1) capital in a transaction with Patriot Financial Partners, L.P. ("Patriot") pursuant to which Patriot exchanged $20 million of our Series A Convertible Preferred Stock for our common shares and purchased an additional $10 million of our common shares for cash.

  • Increased Tier 1 capital by issuing $50 million of depositary shares, each representing a 1/40th interest in a share of the Company's 8.500% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B ("Series B Preferred"), with a liquidation preference of $1,000 per share (equivalent to $25.00 per Depositary Share).

  • Refinanced and upsized Newtek Merchant Solutions' borrowing facility with a new $95 million financing solution through Goldman Sachs Alternatives.

  • Originated $104 million of Alternative Loan Program (“ALP”) loans compared to $66 million for 3Q24.

  • Originated $187 million of SBA 7(a) loans compared to 3Q24 originations of $243 million. In addition, the Company sold $69 million of guaranteed portions of SBA 7(a) loans in 3Q25.

  • Originated $28 million of SBA 504 loans. In addition, the Company sold $19 million of SBA 504 loans in 3Q25.

  • Originated $17.8 million and $19.3 million of CRE and C&I loans HFI.

  • Commercial deposits at Newtek Bank increased $52.0 million, or 17% Q/Q, while core consumer deposits grew $95.0 million, or 12% Q/Q; and wholesale deposits decreased $8 million Q/Q.

  • Insured deposits comprised 78% of deposits.

Post 3Q25 Highlights

  • On October 1, 2025, the Company paid a dividend on the Company’s outstanding Series B Preferred in the amount of $9.44 per Preferred Share, or $0.2361 per depositary share, which is equivalent to 1/40th of the dividend on the Preferred Shares. This initial dividend payment on the Series B Preferred was pro-rated for the initial dividend period from the date of the issuance of the Series B Preferred on August 20, 2025.

  • On October 24, 2025, the Company paid a quarterly cash dividend of $0.19 per share on its outstanding common shares.

Commenting on quarterly results, Barry Sloane, CEO, President, and Chairman said, "We are pleased to report basic and diluted EPS of $0.68 and $0.67 for the third quarter of 2025, which compare favorably to basic and diluted EPS of $0.45 for the third quarter of 2024. Compared to balances as of September 30, 2024, loans and deposits increased approximately 58% and 81%, respectively, and we continue to post what we believe are above-average returns with 3Q25 ROAA and ROTCE of 3.06% and 23.7%. In addition, we continue to show the scalability of our operating model with a 3Q25 operating efficiency ratio of 56.3%, an improvement from 61.8% for the year ago quarter. Our business model is structured to capture incremental operating leverage, especially as we execute on plans to continue to grow lower cost business deposits."

Mr. Sloane continued, "On the capital front, we were tremendously successful in the third quarter, raising $30 million of CET1 capital and $80 million of Tier 1 capital. We also refinanced our borrowing facility at Newtek Merchant Solutions, our payments business, with a $95 million financing solution provided by Goldman Sachs. In effect, we are improving the complexion of our capital structure by layering in additional equity capital, with the goal of reducing unsecured debt at the holding company."

Mr. Sloane then went on to discuss NewtekOne's evolution, "NewtekOne’s purpose and mission, which is to provide business and financial solutions to independent business owners in the United States, has not changed since the Company’s inception in 1998. We enhanced our ability to deliver on that mission when we acquired what is now known as Newtek Bank roughly ten quarters ago in January of 2023, converting from a business development company to a financial holding company owning and operating a nationally chartered bank. With our technology enabled platform, we believe that NewtekOne looks different than the vast majority of our competitors. We are proud of having expanded our business by offering our business and financial solutions to our customers. What is most important to us is improving our customers’ business prospects, enhancing their business opportunities, and helping them achieve their business goals."

Mr. Sloane added, "We believe we have created meaningful franchise value in transforming a single-branch sixty year old bank in Flushing, New York, with an antiquated operating model into a branchless, bankerless digital bank. Financial institutions of the future that make loans and provide depository solutions and money movement capabilities to independent business owners will need to do so with state-of-the-art technologies and artificial intelligence and without the use of costly bankers and branches. We believe that NewtekOne is well on its way and ahead of the industry in looking like a financial institution of the future. We have opened up more than 21,000 bank accounts digitally and serve our customers on demand and on camera with payroll, real-time payment, insurance brokerage, and lending solutions to help them grow their businesses. We have consistently ranked as one of the top three SBA lenders in the United States and currently service over 10,000 borrowers."

Mr. Sloane further added, "As we approach the end of 2025, I would like to highlight that our Alternative Lending Program, or ALP, that has completed three securitizations since the ALP was launched in 2019, is preparing a fourth securitization for the fourth quarter of 2025, which we expect to be our largest securitization to date. Investors have heard us discuss how ALP loans are extremely attractive to our client base, very profitable for our shareholders, and additive to our business strategy."

Mr. Sloane concluded, "For investors with a long-term view to owning a company with a winning strategy to help its client base, we believe that NewtekOne has demonstrated, in a relatively short period of time, the ability to raise deposits, make loans digitally, and to provide value-added payroll, insurance, and real-time payment solutions to its clients. We have spent the past two-plus decades developing our strategy and product offerings and believe financial institutions should be providing the helpful and necessary technologies like we offer to the independent business owner universe in the United States. According to the Small Business Administration, this market segment represents 43% of non-farm GDP and includes 36 million businesses. Later today, we look forward to sharing our presentation during our earnings conference call, which will be archived in the investor relations section of our website. We believe our future is extremely bright, and our go forward plan is to continue to provide attractive risk adjusted returns to shareholders."

Third Quarter 2025 Conference Call and Webcast

A conference call to discuss the third quarter 2025 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 29, 2025, at 4:30 p.m. ET.

Please note, to attend the conference call or webcast, participants should register online at NewtekOne, Inc. Third Quarter 2025 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 2025 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, 2025. 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, including the duration of the current government shutdown. 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, 2025

December 31, 2024

(Unaudited)

ASSETS

Cash and due from banks

$

3,980

$

6,941

Restricted cash (amounts related to VIEs of $6.3 million and $6.3 million, respectively)

24,737

28,226

Interest bearing deposits in banks

188,214

346,207

Total cash and cash equivalents

216,931

381,374

Debt securities available-for-sale, at fair value

18,009

23,916

Loans held for sale, at fair value

757,001

372,286

Loans held for sale, at LCM

28,678

58,803

Loans held for investment, at fair value (amounts related to VIEs of $213.8 million and $257.2 million, respectively)

305,720

369,746

Loans held for investment, at amortized cost, net of deferred fees and costs

834,087

621,651

Allowance for credit losses

(45,166

)

(30,233

)

Loans held for investment, at amortized cost, net

788,921

591,418

Federal Home Loan Bank and Federal Reserve Bank stock

4,064

3,585

Settlement receivable

469

52,465

Residuals in securitizations, at fair value

76,701

—

Joint ventures and other non-control investments, at fair value (cost of $36,692 and $44,039), respectively

51,390

57,678

Goodwill and intangibles

14,633

14,752

Right of use assets

2,292

5,688

Servicing assets, at fair value

17,023

22,062

Servicing assets, at LCM

30,540

24,195

Other assets

86,727

60,636

Assets held for sale

—

21,308

Total assets

$

2,399,099

$

2,059,912

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities:

Deposits:

Noninterest-bearing

$

21,771

$

11,142

Interest-bearing

1,156,193

961,910

Total deposits

1,177,964

973,052

Borrowings (including borrowings of VIEs of $140.6 million and $186.6 million, respectively)

748,549

708,041

Dividends payable

5,387

5,233

Lease liabilities

2,322

6,498

Deferred tax liabilities, net

5,343

2,244

Due to participants

35,047

21,532

Accounts payable, accrued expenses and other liabilities

37,780

40,806

Liabilities directly associated with assets held for sale

—

6,224

Total liabilities

2,012,392

1,763,630

Shareholders' Equity:

(Unaudited)

Series A Preferred stock (par value $0.00 and $0.02 per share; 0 and 20 authorized, 0 and 20 issued and outstanding, respectively)

—

19,738

Series B Preferred stock (par value $0.02 per share; 54 authorized, 50 issued and outstanding, respectively)

48,181

—

Common stock (par value $0.02 per share; authorized 199,980 shares, 28,876 and 26,291 issued and outstanding, respectively)

577

526

Retained earnings

81,981

57,773

Additional paid-in capital

255,963

218,266

Accumulated other comprehensive income (loss), net of income taxes

5

(21

)

Total shareholders' equity

386,707

296,282

Total liabilities and shareholders' equity

$

2,399,099

$

2,059,912

NEWTEKONE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, except for Per Share Data)

Three Months Ended

September 30, 2025

June 30, 2025

September 30, 2024

(unaudited)

(unaudited)

(unaudited)

Interest income

Debt securities available-for-sale

$

200

$

214

$

334

Loans and fees on loans

36,376

33,354

28,588

Other interest earning assets

2,518

2,950

2,349

Total interest income

39,094

36,518

31,271

Interest expense

Deposits

10,879

9,357

7,314

Notes and securitizations

10,710

10,908

11,482

Bank and FHLB borrowings

2,956

2,330

1,494

Total interest expense

24,545

22,595

20,290

Net interest income

14,549

13,923

10,981

Provision for credit losses

7,712

9,117

6,928

Net interest income after provision for credit losses

6,837

4,806

4,053

Noninterest income

Dividend income

425

600

374

Net loss on loan servicing assets

(4,493

)

(4,355

)

(1,786

)

Servicing income

6,076

6,054

4,958

Net gains on sales of loans

9,563

15,526

25,675

Net (loss) gain on residuals in securitizations

(1,450

)

31,465

—

Net gain (loss) on loans under the fair value option

29,250

(11,761

)

(4,085

)

Technology and IT support income

—

—

3,311

Electronic payment processing income

11,053

11,739

11,777

Other noninterest income

9,964

7,007

11,627

Total noninterest income

60,388

56,275

51,851

Noninterest expense

Salaries and employee benefits expense

19,973

23,135

19,149

Technology services expense

—

—

1,796

Electronic payment processing expense

4,429

4,428

4,438

Professional services expense

3,793

4,304

3,929

Other loan origination and maintenance expense

6,764

3,287

4,132

Depreciation and amortization

129

274

517

Loss on extinguishment of debt

179

—

—

Other general and administrative costs

6,892

6,881

4,886

Total noninterest expense

42,159

42,309

38,847

Net income before taxes

25,066

18,772

17,057

Income tax expense

7,165

5,069

5,123

Net income

17,901

13,703

11,934

Dividends to preferred shareholders

(472

)

(400

)

(400

)

Net income available to common shareholders

$

17,429

$

13,303

$

11,534

Earnings per Common Share:

Basic

$

0.68

$

0.53

$

0.45

Diluted

$

0.67

$

0.52

$

0.45

NEWTEKONE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, except for Per Share Data)

Nine Months Ended

September 30, 2025

September 30, 2024

(unaudited)

(unaudited)

Interest income

Debt securities available-for-sale

$

690

$

1,168

Loans and fees on loans

104,213

80,346

Other interest earning assets

8,599

6,177

Total interest income

113,502

87,691

Interest expense

Deposits

30,081

19,755

Notes and securitizations

32,592

33,427

Bank and FHLB borrowings

8,424

5,496

Total interest expense

71,097

58,678

Net interest income

42,405

29,013

Provision for credit losses

30,334

16,742

Net interest income after provision for credit losses

12,071

12,271

Noninterest income

Dividend income

2,711

1,128

Net loss on loan servicing assets

(12,500

)

(5,383

)

Servicing income

17,655

14,922

Net gains on sales of loans

38,050

68,531

Net (loss) gain on residuals in securitizations

30,015

—

Net gain (loss) on loans under the fair value option

35,566

(4,181

)

Technology and IT support income

—

14,255

Electronic payment processing income

33,401

35,409

Other noninterest income

24,163

28,557

Total noninterest income

169,061

153,238

Noninterest expense

Salaries and employee benefits expense

64,424

60,445

Technology services expense

—

8,624

Electronic payment processing expense

13,304

14,977

Professional services expense

11,532

11,237

Other loan origination and maintenance expense

14,468

9,391

Depreciation and amortization

549

1,570

Loss on extinguishment of debt

179

—

Other general and administrative costs

21,189

14,326

Total noninterest expense

125,645

120,570

Net income before taxes

55,487

44,939

Income tax expense

14,516

12,410

Net income

40,971

32,529

Dividends to preferred shareholders

(1,272

)

(1,200

)

Net income available to common shareholders

$

39,699

$

31,329

Earnings per Common Share:

Basic

$

1.57

$

1.26

Diluted

$

1.54

$

1.26

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, 2025

June 30, 2025

September 30, 2024

Return on Average Equity and Average Tangible Common Equity

Numerator: Net Income (GAAP)

$

17,429

$

13,703

$

11,934

Tax-adjusted amortization of intangibles

307

117

384

Dividend on preferred equity

(472

)

(400

)

(400

)

Numerator: Adjusted net income

17,264

13,420

11,918

Average Total Shareholders' Equity1

339,116

299,308

258,326

Deduct: Preferred Stock (GAAP)

35,802

19,738

19,738

Average Common Shareholders' Equity1

303,314

279,570

238,588

Return on Average Common Equity

20.4

%

18.4

%

18.4

%

Deduct: Average Goodwill and Intangibles1

14,653

15,130

29,883

Denominator: Average Tangible Common Equity1

$

288,661

$

264,440

$

208,705

Return on Average Tangible Common Equity1

23.7

%

20.4

%

22.7

%

Return on Average Assets

Numerator: Net Income (GAAP)

$

17,429

$

13,703

$

11,934

Denominator: Average Assets1

2,262,658

2,098,325

1,551,009

Return on Average Assets1

3.06

%

2.62

%

3.06

%

Pre-Provision Net Revenue (PPNR)

Net Income before Taxes (GAAP)

$

25,066

$

18,772

$

17,057

Add: Provision for Credit Losses (GAAP)

7,712

9,117

6,928

Pre-Provision Net Revenue1,2

$

32,778

$

27,889

$

23,985

Pre-Provision Return on Average Assets (PPROA)

Pre-Provision Net Revenue1,2

$

32,778

$

27,889

$

23,985

Denominator: Average Assets1

2,262,658

2,098,325

1,551,009

Pre-Provision Return on Average Assets1

5.75

%

5.33

%

6.15

%

NewtekOne, Inc.

As of and for the three months ended

(dollars and number of shares in thousands)

September 30, 2025

June 30, 2025

September 30, 2024

Efficiency Ratio

Numerator: Non-Interest Expense (GAAP)

$

42,159

$

42,309

$

38,847

Net Interest Income (GAAP)

14,549

13,923

10,981

Non-Interest Income (GAAP)

60,388

56,275

51,851

Denominator: Total Income

$

74,937

$

70,198

$

62,832

Efficiency Ratio1

56.3

%

60.3

%

61.8

%

Tangible Book Value Per Share

Total Shareholders' Equity (GAAP)

$

386,707

$

312,180

$

281,785

Deduct: Goodwill and Intangibles (GAAP)

14,633

14,672

29,624

Numerator: Total Tangible Book Value1

$

372,074

$

297,508

$

252,161

Denominator: Total Number of Shares Outstanding

28,876

26,317

26,018

Tangible Book Value Per Share1

$

12.89

$

11.30

$

9.69

Tangible Book Value Per Common Share

Total Tangible Book Value1

$

372,074

$

297,508

$

252,161

Deduct: Preferred Stock (GAAP)

48,181

19,738

19,738

Numerator: Tangible Book Value Per Common Share1

$

323,893

$

277,770

$

232,423

Denominator: Total Number of Shares Outstanding

28,876

26,317

26,018

Tangible Book Value Per Common Share1

$

11.22

$

10.55

$

8.93

1Non-GAAP financial measure.

2PPNR is a non-GAAP metric calculated based on total net revenue less non-interest expense before adjusting for the provision for credit losses for the period. Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.