Company Overview - NewtekOne (NEWT) shares increased by 7.2% to close at $10.53, following a notable trading volume compared to typical sessions, despite a 18.5% loss over the past four weeks [1] - The company reported strong preliminary loan and deposit metrics for Q1 2025, with 580 SBA 7(a) loans totaling $213 million originated, and a 7% increase in SBA 7(a) loans held for investment from December 31, 2024 [2][3] Financial Performance - Commercial Real Estate (CRE) loans reached $231 million, growing 20% sequentially, while Commercial & Industrial loans totaled $51 million [3] - SBA 504 loan originations were $17 million, Alternative Loan Program loans amounted to $68.5 million, and total deposits grew by 2% to $1.1 billion [3] - The company reaffirmed its 2025 EPS guidance of $2.10–$2.50, citing strong loan and deposit growth supported by its tech platform NewTracker, which generates 600–900 daily referrals [3] Earnings Expectations - NewtekOne is expected to report quarterly earnings of $0.34 per share, reflecting a year-over-year decline of 10.5%, with revenues projected at $64.67 million, an 11% increase from the previous year [4] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that stock price movements may not continue without trends in earnings estimate revisions [6] Industry Context - NewtekOne is part of the Zacks Financial - Miscellaneous Services industry, where Lument Finance (LFT) also operates, closing 4.7% higher at $2.44, but has returned -13.1% in the past month [6] - Lument's consensus EPS estimate has decreased by 19.1% over the past month to $0.10, representing a year-over-year change of -33.3%, and currently holds a Zacks Rank of 4 (Sell) [7]

Financial Performance - NewtekOne, Inc. announced balance sheet metrics for Q1 2025 and reiterated EPS guidance for 2025[7]. - The press release regarding financial results was issued on April 8, 2025, highlighting key performance indicators[7]. - The company’s financial metrics are subject to change pending the filing of its Form 10-Q for the period ended March 31, 2025[6]. Company Classification - The company is classified as an emerging growth company under the Securities Act of 1933[4]. Stock and Notes Information - NewtekOne's common stock is traded on the Nasdaq Global Market under the symbol NEWT[3]. - The company has multiple classes of notes registered, including 5.50% Notes due 2026 and 8.625% Notes due 2029[3]. Risks and Uncertainties - Forward-looking statements indicate that actual results may differ significantly from current expectations due to various risks and uncertainties[6]. Contact Information - The address of NewtekOne's principal executive offices is located in Boca Raton, Florida[2]. - The company’s telephone contact number is (212) 356-9500[2]. Report Limitations - The report does not include any financial statements or exhibits beyond the press release[8].

Core Insights - NewtekOne, Inc. reported preliminary loan and deposit metrics for Q1 2025, indicating strong performance in line with projections, with an EPS guidance of $2.10-$2.50 per share for 2025 [1] - The company emphasizes its technology-enabled platform, NewTracker®, which efficiently sources client opportunities and processes high-quality credits, generating 600-900 referrals daily at no additional cost [1] - Newtek Bank's efficiency ratio for 2024 was approximately 43%, showcasing the effectiveness of its operating model during market volatility [1] Loan Originations - In Q1 2025, NewtekOne originated 580 SBA 7(a) loans totaling $213 million, compared to 489 loans totaling $212 million in Q1 2024, with a projected $1 billion in SBA 7(a) originations for 2025 [4] - The company originated $41 million in Commercial Real Estate (CRE) loans and $23 million in Commercial & Industrial (C&I) loans in Q1 2025, with a 20% quarter-over-quarter growth in the CRE portfolio [4] - Newtek Bank's total loan portfolio is expected to grow significantly, with a projected combined CRE/C&I portfolio of approximately $464 million by year-end 2025, reflecting a 94% year-over-year growth [4] Deposit Metrics - Newtek Bank reported approximately $1.06 billion in deposits at the end of Q1 2025, marking a 2% increase from Q4 2024 and an 88% increase year-over-year [4] - Business deposits increased by 8.9%, while core consumer deposits grew by 2.5%, although wholesale deposits declined by 32% [4] - The company anticipates an additional $245 million in deposit growth for 2025 [4] Business Solutions - NewtekOne provides a wide range of business and financial solutions, including banking, business lending, electronic payment processing, and technology solutions [2][3] - The company has been operational since 1999, focusing on cost-efficient products and services to help independent business owners across all 50 states [2]

Core Viewpoint - NewtekOne, Inc. is set to report its first quarter 2025 financial results on May 6, 2025, with a conference call scheduled for May 7, 2025, to discuss these results [1][2]. Company Overview - NewtekOne, Inc. is a financial holding company that provides a variety of business and financial solutions to independent business owners across all 50 states since 1999 [3]. - The company aims to help businesses grow sales, control expenses, and reduce risk through state-of-the-art, cost-efficient products and services [3]. Business Solutions Offered - NewtekOne and its subsidiaries offer a range of solutions including: - Banking services through Newtek Bank, N.A. - Business Lending and SBA Lending Solutions - Electronic Payment Processing - Accounts Receivable Financing and Inventory Financing - Insurance Solutions - Payroll and Benefits Solutions - Technology Solutions such as Cloud Computing, Data Backup, IT Consulting, and Web Services provided by Intelligent Protection Management Corp. [4].

Deposit Growth and Banking Performance - Newtek Bank, N.A. reached over $1.0 billion in deposits, growing total deposits by $884 million in its first two years of operations[7] - The company's press release highlights significant deposit growth, indicating strong performance in its banking operations[7] Regulatory and Filing Information - The press release is included as Exhibit 99.1 in the Form 8-K filing[9] - The report was filed on January 6, 2025, with the Securities and Exchange Commission[2] Stock and Market Information - The company's common stock and multiple notes are registered on the Nasdaq Global Market LLC under symbols NEWT, NEWTZ, NEWTI, NEWTG, and NEWTH[3] Company Classification - The company is not classified as an emerging growth company[4] Forward-Looking Statements - Forward-looking statements in the report are subject to significant risks and uncertainties, and actual results may differ materially[6] Executive and Contact Information - The report is signed by Barry Sloane, CEO, President, and Chairman of the Board[13] - The company's principal executive offices are located at 4800 T Rex Avenue, Suite 120, Boca Raton, Florida 33431[2] - The company's telephone number is listed as (212) 356-9500[2]

Core Viewpoint - NewtekOne, Inc. has successfully completed a $30 million offering of 8.375% notes due in 2030, and its credit rating has been upgraded from "BBB+" to "A-" by Egan-Jones Ratings Company, reflecting the company's strong financial position and creditworthiness [1][4]. Group 1: Offering Details - The company completed an exempt offering of $30 million aggregate principal amount of its 8.375% notes due April 1, 2030, through a private placement with eleven institutional accredited investors [1]. - Net proceeds from the sale of the notes were approximately $29.250 million after deducting estimated offering expenses, which will be used to refinance existing indebtedness and for general corporate purposes [2]. Group 2: Credit Rating Upgrade - Egan-Jones Ratings Company upgraded NewtekOne's credit rating from "BBB+" to "A-", indicating a high level of creditworthiness with low sensitivity to evolving credit conditions [4]. - The upgrade was based on the company's healthy shareholders equity to asset ratio, strong tier 1 capital ratio, and improvement in efficiency ratio [4]. - Barry Sloane, CEO, expressed that the rating upgrade reflects the strength of the company's earnings stream and well-capitalized balance sheet [4]. Group 3: Company Overview - NewtekOne, Inc. is a financial holding company that provides a wide range of business and financial solutions to independent business owners across all 50 states [7]. - The company's offerings include banking, business lending, SBA lending solutions, electronic payment processing, accounts receivable financing, insurance solutions, and technology solutions [8][9].

Lending Performance - Newtek Bank was the largest SBA 7(a) lender in the U.S. by dollar loan approval volume, approving over $1 billion of SBA 7(a) loans during the first 4.5 months of the SBA's fiscal year 2025[30]. - The company originated $943.0 million of SBA 7(a) loans during 2024 and $814.4 million during 2023, indicating a strong lending performance[33]. - Newtek Bank's SBA 7(a) loan portfolio consisted of 6,968 loans originated across 50 states in 81 different industries as of December 31, 2024, demonstrating a diversified loan distribution[35]. - Newtek Bank ranks as the largest SBA 7(a) lender based on dollar volume of loan approvals as of December 31, 2024[59]. - Newtek Bank has originated SBA 504 loans with a maximum loan amount typically not exceeding $5.5 million[37]. - Newtek Bank offers larger loans between $5.0 million and $15.0 million, targeting independent business owners with strong balance sheets and cash flow[65]. - Newtek Bank's SBA 7(a) loans allow for rapid sale of U.S. government guaranteed portions, enhancing balance sheet management and returns[63]. - Newtek Bank sells guaranteed portions of SBA 7(a) loans at premiums, historically above 110% of par value[178]. Operational Efficiency - The company transitioned all SBA 7(a) loan originations to Newtek Bank in April 2023, enhancing operational efficiency and service delivery[31]. - Newtek Bank received PLP status in April 2023, allowing expedited processing of SBA loan applications without prior SBA review[31]. - The NewTracker platform has historically received hundreds of unique referrals daily from alliance partners, enhancing client acquisition capabilities[19]. - The Newtek Advantage provides independent business owners with 24/7 access to business and financial solutions experts, integrating with Intuit QuickBooks for real-time financial insights[23]. - Newtek Bank's digital account opening platform has facilitated rapid growth in its deposit base with competitive market rates[40]. - The patented NewTracker® software enables cost-effective customer acquisition and transaction processing, providing real-time access for referral partners[64]. - Newtek Bank's participation in the secondary market for SBA 7(a) loans is regulated by the SBA, which may restrict further sales if compliance issues arise[116]. Market Position and Strategy - The U.S. independent business owner/SMB market includes 34.8 million businesses, representing a large, underserved market[59]. - Increased demand for comprehensive SMB solutions is driving growth, with a focus on electronic payment processing, insurance services, and payroll solutions[60]. - The company aims to enhance clients' businesses through its comprehensive financial solutions, positioning itself for continued growth in underserved market segments[60]. - The company has historically focused on long-term growth needs for its subsidiaries rather than immediate returns, aiming to support the development of businesses within its integrated operational platform[135]. - The company seeks to lend to businesses with strong competitive positions and appropriate capital structures to minimize risk and enhance loan performance[126]. Regulatory Compliance - The company is subject to comprehensive regulation by the OCC and the FDIC, ensuring safety and soundness in its operations[82]. - Newtek Bank is required to maintain a Tier 1 leverage ratio of no less than 10% and a total risk-based capital ratio of 11.5% as per commitments made under the Operating Agreement[94]. - The capital thresholds to be regarded as a well-capitalized institution include a common equity tier 1 risk-based capital ratio of 6.5%, a Tier 1 risk-based capital ratio of 8.0%, and a total risk-based capital ratio of 10.0%[93]. - The company is subject to various federal, state, and local laws governing consumer protection, including fair lending and privacy regulations[100]. - The company must comply with anti-money laundering laws, requiring significant investment in compliance programs[104]. - Regulatory capital rules limit the ability of Newtek Bank to pay dividends, requiring compliance with certain capital levels before any distribution[98]. - The company is not currently subject to the examination and enforcement jurisdiction of the Consumer Financial Protection Bureau (CFPB) as its assets are less than $10 billion[102]. Risk Management - The company maintains disciplined underwriting policies and rigorous portfolio management, including quantitative and qualitative stress tests[69]. - A stress test is conducted on applicants' cash flow to assess their ability to withstand interest rate increases, with a focus on maintaining a debt service coverage ratio above 1:1[148]. - The company evaluates fixed assets based on net book value to determine realizable value among collateral types[161]. - The company requires a personal financial statement and tax transcripts for all owners of 20% or more, ensuring thorough credit assessment[149]. - The company emphasizes a value-oriented lending philosophy, screening potential loan opportunities for suitability and consistency with underwriting criteria[142]. Employee and Corporate Governance - As of December 31, 2024, the workforce consisted of 591 professionals, emphasizing a commitment to diversity and inclusion in the workplace[190]. - The company aims to maintain a competitive compensation and benefits structure to retain key management personnel, which is critical for business management[189]. - The company has adopted a code of ethics to ensure compliance with Nasdaq Corporate Governance Requirements, promoting ethical practices among employees[196]. - The company has a whistleblower policy in place to encourage reporting of unethical or illegal activities, ensuring confidentiality and protection against retaliation[192]. - The company is committed to ongoing training and development opportunities for employees to enhance their skills and effectiveness[190]. Economic and Market Conditions - Global economic conditions, including uncertainty about the financial stability of the United States, could significantly impact the company's business and financial condition[214]. - Economic recessions or downturns could impair clients and negatively affect operating results[214]. - Inflation may adversely impact the company's business and financial condition[214]. - The company faces a highly competitive market for clients, which could reduce returns and result in losses[214]. - Indebtedness could adversely affect the company's business and financial results[214]. - Public health emergencies and resulting economic uncertainties could significantly impact the fair value of investments and clients[214].

Core Insights - NewtekOne, Inc. announced the hiring of John O'Connor as Chief Revenue Officer for its payment processing subsidiary, Newtek Merchant Solutions (NMS) [1][2] - O'Connor's role will focus on promoting NewtekOne's business and financial solutions to NMS's merchant processing clients, including zero-fee business checking and savings accounts [1][2] - The company aims to drive growth in business deposit accounts, leveraging O'Connor's extensive experience in marketing and financial services [2] Company Overview - NewtekOne is a financial holding company that provides a wide range of business and financial solutions to independent business owners across the United States [3][4] - The company has been operational since 1999, offering cost-efficient products and services to help businesses grow, control expenses, and reduce risk [3] Services Offered - NewtekOne's services include banking through Newtek Bank, business lending, SBA lending solutions, electronic payment processing, accounts receivable financing, inventory financing, insurance solutions, and payroll and benefits solutions [4] - Additionally, the company provides technology solutions such as cloud computing, data backup, IT consulting, and web services through its subsidiary Intelligent Protection Management Corp. [4]

Core Insights - NewtekOne, Inc. has appointed Vaibhav "Vik" Mahajan as Chief Investment Officer of Newtek Bank, N.A. to enhance loan sales execution and source loan purchase opportunities [1][2] - Mr. Mahajan brings 25 years of experience in investment banking and financial services, previously serving as chief strategy officer at iCreditWorks and leading investment banking efforts at Deutsche Bank and Credit Suisse [1][2] - NewtekOne is a financial holding company providing a range of business and financial solutions to independent business owners since 1999 [3][4] Company Strategy - The appointment of Mr. Mahajan aligns with Newtek Bank's strategy to optimize the execution of SBA 504 and government-guaranteed SBA 7(a) loans [2] - Mr. Mahajan's role will be crucial in maximizing outcomes in loan sales and sourcing additional loan opportunities to enhance the bank's portfolio [2] Business Solutions - NewtekOne offers a variety of financial solutions including banking, business lending, SBA lending solutions, electronic payment processing, and technology solutions [4] - The company aims to provide cost-efficient products and services to help independent business owners grow sales, control expenses, and reduce risk [3]

Core Insights - NewtekOne, Inc. has appointed Bryce Rowe as Vice President of Investor Relations, bringing 25 years of experience in equity research, particularly in small-cap banks and business development companies [1][2] - The company aims to enhance its visibility and understanding among investors, leveraging Mr. Rowe's existing institutional relationships and expertise in banking [2] - NewtekOne has transitioned from a business development company to a financial holding company in early 2023, adopting a unique operating model that is branchless, broker-less, and banker-less, which has contributed to its above-average profitability [2] Company Overview - NewtekOne, Inc. is a financial holding company that provides a variety of business and financial solutions to independent business owners across all 50 states [3] - The company's offerings include banking services, business lending, SBA lending solutions, electronic payment processing, accounts receivable financing, inventory financing, insurance solutions, and payroll and benefits solutions [4] - NewtekOne also provides technology solutions such as cloud computing, data backup, storage and retrieval, IT consulting, and web services through its subsidiary Intelligent Protection Management Corp. [4]