Core Viewpoint - NewtekOne, Inc. has declared a quarterly cash dividend of $0.19 per share on its common stock and a dividend of $21.25 per Preferred Share, both payable on April 1, 2026, to shareholders of record as of March 24, 2026 [1][2]. 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 since 1999 [3]. - The company aims to help business owners grow sales, control expenses, and reduce risk through state-of-the-art, cost-efficient products and services [3]. Business Solutions - NewtekOne and its subsidiaries offer various solutions including banking, business lending, SBA lending solutions, electronic payment processing, eCommerce, accounts receivable financing, inventory financing, insurance solutions, web services, and payroll and benefits solutions [4]. - Additionally, NewtekOne provides technology solutions such as cloud computing, data backup, storage and retrieval, IT consulting, and web services through Intelligent Protection Management Corp. [4].

SBA 7(a) Lending - Newtek Bank transitioned all SBA 7(a) loan originations from NSBF in April 2023, ceasing NSBF's SBA 7(a) operations [27]. - Newtek Bank was the third largest SBA 7(a) lender in the U.S. by dollar loan approval volume, approving over $355 million during the SBA's fiscal year 2026 [31]. - From 2012 to December 31, 2022, NSBF was the largest non-bank SBA 7(a) lender in the U.S. based on dollar volume of loan approvals [30]. - Newtek Bank originated $767.8 million of SBA 7(a) loans during 2025 and $943.0 million during 2024, with 2025's volume impacted by the U.S. government shutdown [33]. - The SBA guarantees typically range between 50% and 90% of the principal and interest due on SBA 7(a) loans [29]. - Newtek Bank's total deposits surpassed $1.4 billion as of December 31, 2025, following the launch of new products and a focus on customer acquisition [39]. - Newtek Bank ranks as the third largest SBA 7(a) lender in the U.S. based on dollar volume of loan approvals, indicating a strong position in the market [54]. - Newtek Bank is licensed by the SBA to originate and service loans under the SBA 7(a) Program, transitioning all SBA 7(a) loan originations from NSBF to Newtek Bank in April 2023 [104]. - Newtek Bank has been granted PLP (SBA Preferred Lender Program) status, allowing it to process and close most SBA guaranteed loans without prior SBA review [105]. - Newtek Bank's ability to maintain its SBA 7(a) lending license and PLP status is critical for its loan origination capabilities [105]. - The SBA 7(a) loans are structured to produce a coupon rate of prime plus 3.00% to 6.50%, enabling sales of guaranteed portions in the secondary market [116]. - Newtek Bank's loans are typically secured by first or second liens on business assets, with personal guarantees from owners of 20% or more of the business equity [117]. - Newtek Bank continues to service its current portfolio of SBA 7(a) loans and has originated new loans under the SBA 7(a) Program following the acquisition [129]. Lending Strategy and Products - Newtek Bank's lending platform includes SBA 504 loans, C&I loans, and alternative lending program loans, expanding its financial solutions [35]. - Newtek's strategy focuses on making smaller SBA 7(a) loans, approximately $1.0 million or less, to diversify its loan portfolio across industries [34]. - Newtek Bank focuses on providing commercial loans between $5.0 million and $15.0 million, targeting independent business owners with significant operational history and strong balance sheets [59][60]. - Newtek Bank's lending activities are diversified through various products, including SBA 504 loans, C&I loans, and ALP loans [119]. - Newtek Bank's lending strategy targets independent business owners and SMBs, focusing on loans that generate current income and capital appreciation [110]. Technology and Innovation - Newtek Advantage provides independent business owners with analytics, transactional capabilities, and 24/7 access to financial solutions experts [24]. - NewTracker platform enables Newtek to acquire and process SMB clients in a cost-effective manner, leveraging AI for information exchange [18]. - Newtek's patented NewTracker® software enhances customer acquisition and transaction processing, providing real-time reporting for referral partners [58]. - The company has established a direct loan origination pipeline, allowing for selective underwriting and low-cost attractive credits [58]. - Newtek Bank's loan origination process is supported by a patented NewTracker® technology, enhancing deal sourcing and referral tracking [125]. Risk Management and Compliance - Newtek employs rigorous due diligence and portfolio management practices, including quantitative and qualitative stress tests for prospective loans [62]. - The company is subject to significant penalties and enforcement actions if it fails to comply with applicable laws and regulations [94]. - Newtek Bank must comply with various federal, state, and local laws governing consumer protection, including fair lending and privacy regulations [92]. - Regulatory capital rules limit the ability of Newtek Bank to pay dividends and make capital distributions based on its net income and capital needs [89]. - The company faces risks related to compliance with the Sarbanes-Oxley Act, including the need for management to assess internal controls over financial reporting [185]. - Non-compliance with regulatory requirements could result in significant fines or sanctions, adversely affecting the company's operations and reputation [205]. - The company is subject to extensive regulations as a financial holding company, which may require restructuring or divesting certain businesses, potentially increasing costs [211]. Market Position and Competition - The independent business owner market includes 36.2 million businesses, representing a significant opportunity for Newtek to expand its financial products ecosystem [54]. - The company faces competition from various financial institutions and non-bank lenders, with an emphasis on its ability to process loans quickly and provide superior customer service [164][168]. - Newtek Bank's competitive advantages include a patented referral system, scalability of solutions, and a focus on personalized service for independent business owners [172][170]. Financial Performance and Capital Structure - Newtek Bank's latest CRA rating is "Satisfactory," which is crucial for obtaining regulatory approvals for certain applications [82]. - Newtek Bank is required to maintain a common equity tier 1 risk-based capital ratio of 6.5%, a Tier 1 risk-based capital ratio of 8.0%, a total risk-based capital ratio of 10.0%, and a Tier 1 leverage ratio of 5.0% to be considered well-capitalized [85]. - The company has established a segregated restricted cash account of $10 million to account for potential post-purchase repairs and denials of guaranteed portions of SBA 7(a) loans [108]. - The company converted to a financial holding company on January 6, 2023, and is now subject to federal and state income taxes, unlike its previous status as a RIC which allowed for tax exemptions on distributed income [186]. - The company maintained a dividend policy of distributing approximately 90-100% of its annual taxable income prior to the conversion, which may change under the new tax structure [186]. Employee and Organizational Structure - As of December 31, 2025, Newtek Bank's workforce consisted of 572 professionals, with a commitment to diversity and employee development [175]. - The company maintains a whistleblower policy to encourage reporting of unethical or illegal activities, ensuring confidentiality and protection against retaliation [176]. Economic and Regulatory Risks - The company is exposed to economic risks, including inflation and potential recessions, which could impair client operations and overall financial performance [194]. - The company’s operations may be adversely affected by increased regulatory scrutiny and potential changes in laws governing its activities [194]. - The company’s ability to execute its business strategy could be hindered if it is deemed an investment company under the Investment Company Act of 1940 [194]. - The company’s financial results could be impacted by the soundness of other financial institutions and the competitive market for clients [194]. - The company is at risk of losing its SBA 7(a) lending license and PLP status, which could significantly affect its loan origination volume [198]. - Regulatory changes and increased scrutiny may lead to higher operational costs and reduced revenues, impacting the company's ability to compete effectively [204]. - Rapid dissemination of negative information through social media could lead to significant deposit withdrawals, similar to recent bank collapses [214].

Core Viewpoint - NewtekOne, Inc. has launched the Newtek Seven Day Business Loan™, offering business loans up to $350,000 funded within seven days, structured over a ten-year repayment period with favorable borrowing costs compared to alternatives like merchant cash advances [1][3] Group 1: Product Offering - The Newtek Seven Day Business Loan allows approved borrowers to access funds quickly, with a total borrowing cost that is more favorable than other quick funding options [1] - The loan is secured with collateral and designed to avoid balloon payment risks, providing predictable monthly payments for independent business owners [3] Group 2: Technology Integration - Newtek Bank utilizes the internally developed NewTracker loan processing system powered by AI to achieve seven-day loan processing times [2] - AI assists in the underwriting process by analyzing historical financials, projecting future cash flows, and reviewing corporate documents, enhancing the borrower experience by reducing fees and closing times [2][3] Group 3: Business Growth and Efficiency - The incorporation of AI has allowed Newtek Bank to triple the number of loans closed over the past three years without increasing headcount in the loan closing staff [3] - The company emphasizes its technological advantage in banking, which improves operating efficiency and profitability while maintaining credit quality in lending decisions [3] Group 4: Market Position and Future Outlook - NewtekOne has opened 9,000 deposit accounts in Q4 2025, bringing the total to 35,000, showcasing its ability to operate digitally without traditional banking methods [3] - The company believes that technology-oriented banks will need to leverage advanced tools for efficient customer service and prudent credit underwriting in the future [3]

Core Viewpoint - NewtekOne, Inc. has shown significant improvement in financial health following its transition from a business development company to a financial holding company, making its 8.625% fixed-rate senior notes due 2029 an attractive investment option [1] Financial Performance - NewtekOne has experienced growth and enhanced financial stability since the last analysis on its senior notes [1] Investment Opportunity - The fixed-rate senior notes (NEWTH) offer an appealing yield, indicating a potential investment opportunity for investors seeking fixed-income securities [1]

Group 1 - Primark's parent company, Associated British Foods, is set to appoint Eoin Tonge as the permanent CEO of the fast-fashion chain after he served in an interim capacity for a year [1] - The decision to make Tonge the permanent CEO comes as the company looks to stabilize leadership and continue its growth strategy in the competitive fast-fashion market [1] - The news was reported by Sky News, indicating a significant development for Primark as it navigates the challenges of the retail sector [1] Group 2 - The appointment of a permanent CEO is expected to enhance operational consistency and strategic direction for Primark, which has been focusing on expanding its market presence [1] - Eoin Tonge's leadership is anticipated to bring fresh perspectives and drive initiatives aimed at improving the brand's performance and customer engagement [1] - This leadership change reflects the ongoing evolution within the fast-fashion industry, where companies are adapting to changing consumer preferences and economic conditions [1]

Core Insights - NewtekOne, Inc. is recognized for its lending capabilities and deposit account offerings through its bank subsidiary, Newtek Bank, N.A. [1] - The company has transitioned its SBA lending operations into the bank, enhancing its financial solutions with a full suite of deposit products [2] - Newtek Bank received accolades as "SBA Bank Lender of the Year" from The Coleman Report and "Best Savings Account 2026" from NerdWallet [7] 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] - The company has been operational since 1999, offering cost-efficient products and services to help businesses grow, control expenses, and reduce risks [3] Product and Service Offerings - NewtekOne's solutions include banking, business lending, SBA lending solutions, electronic payment processing, accounts receivable financing, inventory financing, insurance solutions, and payroll and benefits solutions [4] - The company 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]

Core Viewpoint - NewtekOne, Inc. has successfully retired $95 million of fixed-rate senior notes, marking a significant step in its financial management and transition from a Business Development Company (BDC) to a technology-enabled financial holding company [1]. Group 1: Financial Management - The company funded the $95 million repayment using $87.1 million of working capital and an exchange offer that involved $7.9 million of NEWTZ notes being exchanged for newly issued NEWTO notes [1]. - Since 2018, NewtekOne has redeemed a total of $294 million in senior notes, demonstrating a consistent strategy in managing its debt obligations [1]. - The retired notes were the last remnants of debt issued as a BDC, indicating a shift in the company's capital structure [1]. Group 2: Company History and Stability - NewtekOne has a 25-year history as a public company, successfully navigating various economic challenges, including 9/11, the Great Financial Crisis, and the COVID-19 pandemic [1]. - The company has maintained a strong track record, having never missed a principal or interest payment on its debt [1]. - The 17 securitizations issued by the company have either maintained their initial investment-grade ratings or been upgraded, with none being placed on credit watch [1]. Group 3: Business Solutions Offered - NewtekOne provides a wide range of business and financial solutions, including banking, business lending, SBA lending solutions, electronic payment processing, accounts receivable financing, insurance solutions, and payroll and benefits solutions [2][3]. - The company also offers technology solutions such as cloud computing, data backup, IT consulting, and web services through its subsidiary Intelligent Protection Management Corp [3].

Core Insights - NewtekOne (NEWT) reported a revenue of $73.33 million for the quarter ended December 2025, reflecting a year-over-year decline of 2.7% and an EPS of $0.65, down from $0.69 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $80.99 million, resulting in a surprise of -9.45% [1] - The company did not deliver an EPS surprise, as the consensus EPS estimate was also $0.65 [1] Financial Performance Metrics - NewtekOne's efficiency ratio was reported at 55.2%, which is higher than the two-analyst average estimate of 52.7% [4] - Total noninterest income was $55.85 million, below the average estimate of $62.12 million based on three analysts [4] - Net interest income stood at $17.48 million, compared to the average estimate of $18.87 million from three analysts [4] - Noninterest income from servicing was $5.2 million, slightly below the average estimate of $5.5 million based on two analysts [4] - Electronic payment processing income was reported at $10.45 million, compared to the average estimate of $12.27 million from two analysts [4] - Other noninterest income was $8.81 million, below the two-analyst average estimate of $10.73 million [4] - The net loss on loan servicing assets was reported at -$4.19 million, better than the average estimate of -$4.75 million from two analysts [4] - Dividend income was $0.5 million, slightly above the average estimate of $0.44 million based on two analysts [4] - Net gains on sales of loans were reported at $9.51 million, significantly lower than the two-analyst average estimate of $16.55 million [4] Stock Performance - Over the past month, shares of NewtekOne have returned +20.4%, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

分组1 - NewtekOne reported quarterly earnings of $0.65 per share, matching the Zacks Consensus Estimate, but down from $0.69 per share a year ago [1] - The company posted revenues of $73.33 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 9.45%, compared to $75.37 million in the same quarter last year [2] - Over the last four quarters, NewtekOne has surpassed consensus EPS estimates three times, but has topped consensus revenue estimates only once [2] 分组2 - The stock has gained approximately 20.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $77.28 million, and for the current fiscal year, it is $2.31 on revenues of $331.56 million [7] - The Zacks Industry Rank for Financial - Miscellaneous Services is in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - For 2025, the company reported net income before taxes of approximately $80 million, representing a 16.4% increase, while total revenue reached $284 million, up 10.6% from $257 million in 2024 [5][24] - The EPS for Q4 was $0.65, with a full-year basic EPS of $2.21 and diluted EPS of $2.18, reflecting increases of 12% and 11% over 2024 results [8][24] - Tangible book value grew significantly, ending 2025 at $12.19 compared to approximately $6.92 at the beginning of the year [9][14] Business Line Data and Key Metrics Changes - The alternative loan program (ALP) has shown strong performance, with a focus on long-term loans that provide lower monthly payments and flexibility for clients [4][15] - The efficiency ratio at the holding company improved from 63.2% to 58.3%, while the bank's efficiency ratio is approximately 47% [12][24] - Non-performing loans (NPLs) declined for two consecutive quarters, from 7.3% to 6.9% in Q4 2025 [10][22] Market Data and Key Metrics Changes - The company opened 9,000 new depository accounts and reached a total of 34,000 active depository accounts [3] - Business deposits increased by $34 million in Q4 and $164 million for the year, while consumer deposits grew by $167 million in Q4 and $293 million for the year [11] - The held-for-investment portfolio increased by approximately 44% in 2025, with unguaranteed portions of SBA 7(a) loans comprising roughly 60% of the portfolio [25][26] Company Strategy and Development Direction - The company aims to serve independent business owners and small to medium-sized businesses (SMBs), focusing on providing better loan products with longer amortization periods and no fees [4][5] - The strategic acquisition of National Bank of New York City in January 2023 has significantly expanded the company's asset base, now approximately $1.4 billion to $1.5 billion [6][9] - The company is enhancing its technology and operational infrastructure to support growth and improve customer service, aiming to create a frictionless banking experience [29] Management's Comments on Operating Environment and Future Outlook - Management noted a K-shaped economy, with businesses serving the lower end struggling while those serving the middle and upper markets are performing well [60] - The company expects to see improved business confidence and spending, particularly in technology investments, which could drive growth in 2026 [60] - Management expressed optimism about the future, highlighting the potential for continued growth in deposits and loan originations, particularly in the ALP segment [10][24] Other Important Information - The company has initiated the offering of life insurance to business lending clients, with 25% of borrowers purchasing life insurance through the Newtek Agency [11] - The company has maintained healthy capital ratios while experiencing balance sheet growth and profitability [24][25] Q&A Session Summary Question: What drove the increase in deposit account openings? - Management attributed the 50% increase in deposit account openings to the frictionless digital access for both business and consumer deposits, along with strong margins and competitive rates [38][39] Question: What are the trends in non-interest income and expectations for next year? - Management expects the 7(a) business to pick up, citing recent changes in SBA regulations that may benefit their lending volumes [43][44] Question: How are SBA loans performing compared to competitors? - Management indicated that their charge-off rates are in line with industry averages, while their margins are significantly better than those of larger competitors [88]