NASDAQ: NEWT First Quarter 2025 Financial Results Conference Call May 7, 2025 Hosted and Presented by: Barry Sloane, CEO & President Frank M. DeMaria, CFO, NewtekOne, Inc. Scott Price, CFO, Newtek Bank, N.A. Investor Relations Bryce Rowe, CFA browe@newtekone.com (212) 273-8292 www.newtekone.com Note Regarding Forward-Looking Statements Certain statements in this presentation and made during this conference call include statements about our plans and future prospects for the Company and our industry that are ...

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 Viewpoint - NewtekOne, Inc. reported strong financial results for the first quarter of 2025, with diluted earnings per share (EPS) of $0.35, exceeding the projected range of $0.28 to $0.32, despite a challenging economic environment and increased loan loss provisions [1][4]. Financial Highlights for 1Q25 - Basic EPS was $0.36 and diluted EPS was $0.35, compared to $0.38 for both in 1Q24 [5]. - Book value per common share increased to $10.73, reflecting a year-over-year growth of 13.2% and a quarter-over-quarter growth of 2.0% [5]. - Tangible book value per common share rose to $10.17, up 23.0% year-over-year and 8.3% quarter-over-quarter [5]. - Net income before taxes for 1Q25 was approximately $11.6 million, down 11.1% from $13.1 million in 1Q24 [5]. - Pre-provision net revenue (PPNR) was approximately $25.2 million, an increase of 47.0% year-over-year from $17.1 million in 1Q24 [5]. - The efficiency ratio improved to 62.1%, down from 70.6% in 1Q24 [5]. - Return on average assets (ROAA) was 1.81%, with EPS guidance implying a 2025 ROAA range of 2.2%-2.7% [5]. - Return on average equity (ROAE) was 12.7%, with guidance suggesting a 2025 ROAE range of 17.2%-20.2% [5]. - Return on average tangible common equity (ROTCE) was 13.9%, with guidance indicating a 2025 ROTCE range of 18.7%-22.0% [5]. Lending and Other Select Highlights for 1Q25 - SBA 7(a) loan originations were approximately $213.4 million, compared to $211.5 million in 1Q24 [5]. - Alternative Loan Program (ALP) loan originations totaled $68.5 million for 1Q25 [5]. - SBA 504 loan originations were roughly $16.9 million, with $12.9 million in SBA 504 loan sales executed [5]. - Newtek Bank originated $41.2 million in commercial real estate (CRE) loans and $22.7 million in commercial and industrial (C&I) loans held for investment in 1Q25 [5]. - Commercial deposits at Newtek Bank increased by $28 million, or 12% quarter-over-quarter, while core consumer deposits grew by $17 million, or 2% quarter-over-quarter [5]. Post 1Q25 Highlights and 2025 Forecasts - The company forecasts annual EPS in a range of $2.10 to $2.50 for 2025, implying a 17% growth in EPS despite a projected near-doubling of the loan loss provision [4]. - The company continues to expect a material reduction in the drag from its Newtek Small Business Finance (NSBF) subsidiary, with losses decreasing more than 50% quarter-over-quarter [6]. - The NSBF portfolio now constitutes 21% of total loans, down from 41% a year ago, indicating a positive trend in loan quality [6]. - The company emphasizes its unique approach as a financial holding company, leveraging non-bank subsidiaries to generate significant earnings [6].

Author's note: I present an update my best small and mid-cap stock ideas that insiders are buying only to subscribers of my exclusive marketplace, The Insiders Forum. Our model portfolio has more than doubled the return of its benchmark, the Russell 2000, since its launch. To join our community and gain access to our market beating returns, just click on our logo below.Shares of bank holding company NewtekOne, Inc. (NASDAQ: NEWT ) have fallen by roughly two thirds since announcing in 2021 its intention to r ...

Transaction Marks NewtekOne’s 16th SecuritizationBOCA RATON, Fla., April 23, 2025 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (the “Company”) (NASDAQ: NEWT) announced today that it has closed a $184 million securitization backed by $216 million of Alternative Loan Program (“ALP”) loans. This securitization, NALP Business Loan Trust 2025-1, represents the Company’s third asset-backed securitization secured by ALP loans, the first two of which were executed out of NewtekOne joint ventures, and is the Company’s 16th r ...

BOCA RATON, Fla., April 23, 2025 (GLOBE NEWSWIRE) -- Boca Raton, FL, April 23, 2025 - NewtekOne, Inc. (the “Company”) (NASDAQ: NEWT) announced that Peter Downs has been named President of Newtek Bank, N.A. (the “Bank”). In addition, Frank M. DeMaria has been named Chief Financial Officer of the Company, with Scott Price maintaining the role as Chief Financial Officer of Newtek Bank, focusing on developing and executing the Bank's financial strategy. Barry Sloane, CEO, President and Chairman, said, “We acqui ...

BOCA RATON, Fla., April 23, 2025 (GLOBE NEWSWIRE) -- Boca Raton, FL, April 23, 2025 - NewtekOne, Inc. (the "Company") (NASDAQ:NEWT) announced that Peter Downs has been named President of Newtek Bank, N.A. (the "Bank"). In addition, Frank M. DeMaria has been named Chief Financial Officer of the Company, with Scott Price maintaining the role as Chief Financial Officer of Newtek Bank, focusing on developing and executing the Bank's financial strategy. Barry Sloane, CEO, President and Chairman, said, "We acquir ...

BOCA RATON, Fla., April 14, 2025 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (the “Company”) (NASDAQ: NEWT) announced the termination of three office space leases covering roughly 52,000 square feet, which will reduce the Company’s annual expenses by approximately $2.0 million on a recurring basis beginning in the second quarter of 2025. These lease terminations reflect the Company’s strategic shift to a mostly remote workforce and the Company’s technological capabilities to produce growth without having to use exp ...

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]

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]