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 Viewpoint - 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]. 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, aiming to help them grow sales, control expenses, and reduce risk [3][4]. - The company's services include banking, business lending, SBA lending solutions, electronic payment processing, accounts receivable financing, inventory financing, insurance solutions, payroll and benefits solutions, and technology solutions [4]. Appointment of Bryce Rowe - Bryce Rowe's role will encompass all aspects of investor relations, focusing on enhancing the company's visibility and understanding among current and potential investors [2]. - Rowe has a strong background as a senior equity research analyst and is expected to leverage his existing institutional relationships to benefit NewtekOne [2]. - He expressed enthusiasm for the company's unique operating model and its recent transition from a BDC to a financial holding company, highlighting its above-average profitability [2].

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]

NASDAQ: NEWT Fourth Quarter and Full Year 2024 Financial Results Conference Call February 27, 2025 Hosted and Presented by: Barry Sloane, CEO & President M. Scott Price, CFO Also Attending Nicolas Young, President, Newtek Bank, N.A. Investor Relations Jayne Cavuoto Director of Investor Relations jcavuoto@newtekone.com (212) 273-8179 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 f ...

Call Start: 08:30 January 1, 0000 9:34 AM ET NewtekOne, Inc. (NASDAQ:NEWT) Q4 2024 Earnings Conference Call February 27, 2025 08:30 AM ET Company Participants Barry Sloane - Founder, President & CEO Scott Price - CFO, NewtekOne & Newtek Bank National Association Conference Call Participants Crispin Love - Piper Sandler Steve Moss - Raymond James Tim Switzer - KBW Christopher Nolan - Ladenburg Thalmann Operator Good day, and thank you for standing by. Welcome to the NewtekOne, Inc. Fourth Quarter 2024 Earnin ...

Financial Data and Key Metrics Changes - The company reported earnings per share of $0.70 for basic and $0.69 for diluted, representing a 43% improvement over the previous year and quarter [11] - Net interest income increased by 36% compared to the same three-month period a year earlier [12] - Shareholders' equity rose to $296 million, a 19% increase [13] Business Line Data and Key Metrics Changes - The Alternative Loan Program (ALP) saw $269 million in loans for the year, with over $83 million in ALP loans for the 12 months [14] - The company acquired 950 new business checking accounts, with core business deposits growing to $216 million, an increase of approximately $106 million from the previous year [27] Market Data and Key Metrics Changes - The company reported a return on average assets (ROAA) of 6.3% and a return on tangible common equity (ROTCE) of 48% [28] - The efficiency ratio was reported at 42%, indicating strong operational performance [28] Company Strategy and Development Direction - The company aims to provide technology-enabled financial solutions to over 30 million independent business owners in the U.S. [9] - The transition from a Business Development Corporation to a financial holding company is intended to enhance service offerings and customer acquisition through technology [3][10] - The company positions itself as a disruptor in the banking industry, similar to Uber and Amazon, focusing on technology to improve customer experience and operational efficiency [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage credit risk and maintain profitability despite potential increases in charge-offs [40][41] - The company anticipates a range of $2.10 to $2.50 in earnings per share for 2025, reflecting a cautious but optimistic outlook [31][32] - Management noted that the first quarter is typically the lowest for earnings, with expectations for a ramp-up throughout the year [78] Other Important Information - The company has a significant amount of cash on hand, approximately $325 million, which will be used to pay off higher-cost CDs maturing in the near term [58] - The company has been recognized for its strong non-interest income, which is expected to continue growing [56] Q&A Session Summary Question: Can you provide detail on the cadence of earnings throughout 2025? - Management indicated that the first quarter is typically lower, with a range of $0.28 to $0.32 expected, and a ramp-up in subsequent quarters [80] Question: What drove the $9.4 million markup on loans accounted for under fair value options? - The markup was primarily due to the fair value of ALP loans, which are securitized with strong margins [84] Question: How are charge-off expectations being modeled? - Charge-off expectations are based on historical patterns, with a projected increase to 2% for 2025, reflecting the seasoning of the loan portfolio [90][92] Question: What are the drivers of the negative $7.3 million loan servicing asset revaluation? - This was attributed to the decay in the balance of the 7(a) portfolio, which is not growing, leading to amortization and fair value changes [99] Question: What investments are planned for 2025? - The company plans to invest in resources across various departments to support growth while managing risk [108]

Core Insights - NewtekOne (NEWT) reported revenue of $75.37 million for Q4 2024, a 31% year-over-year increase, with an EPS of $0.69 compared to $0.53 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Financial Performance - Total noninterest income was $64.07 million, surpassing the average estimate of $57.53 million from three analysts [4] - Net interest income was $11.29 million, slightly below the average estimate of $12.30 million from three analysts [4] - Noninterest income from servicing was $5.17 million, exceeding the two-analyst average estimate of $4.92 million [4] - Electronic payment processing income was $10.64 million, below the average estimate of $13.33 million from two analysts [4] - Other noninterest income was $11.74 million, compared to the two-analyst average estimate of $14.31 million [4] - Loan servicing asset revaluation resulted in a loss of $7.28 million, significantly worse than the estimated loss of $1.80 million [4] - Dividend income was $0.39 million, slightly below the average estimate of $0.42 million from two analysts [4] - Net gains on sales of loans were $28.65 million, exceeding the average estimate of $22.26 million from two analysts [4] Stock Performance - NewtekOne shares have returned -6.7% over the past month, compared to a -2.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - NewtekOne (NEWT) reported quarterly earnings of $0.69 per share, exceeding the Zacks Consensus Estimate of $0.66 per share, and up from $0.53 per share a year ago [1] - The company achieved revenues of $75.37 million for the quarter, surpassing the Zacks Consensus Estimate by 7.93%, compared to $57.53 million in the same quarter last year [3] Earnings Performance - The earnings surprise for the recent quarter was 4.55%, following a previous surprise of 9.76% when earnings were $0.45 per share against an expectation of $0.41 [2] - NewtekOne has consistently surpassed consensus EPS estimates over the last four quarters [2] Revenue Insights - The company has also exceeded consensus revenue estimates in each of the last four quarters [3] - The current consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $63.32 million, and for the current fiscal year, it is $2.12 on revenues of $276.51 million [8] Market Performance - NewtekOne shares have declined approximately 4.5% since the beginning of the year, while the S&P 500 has gained 1.3% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Financial - Miscellaneous Services industry, to which NewtekOne belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

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 raised its full-year 2025 earnings per share (EPS) forecast range to $2.10 to $2.50, reflecting strong financial performance and growth in various segments [1][10]. Financial Highlights for Q4 2024 - Net income for Q4 2024 was $18.3 million, with EPS of $0.70 per basic and $0.69 per diluted share, marking a 55.6% increase from Q3 2024 and a 62.8% increase from Q4 2023 [5]. - Net interest income was $11.3 million, up 2.7% from Q3 2024 and 36.1% from Q4 2023 [5]. - Total assets reached $2.1 billion, a 50.0% increase from $1.4 billion at the end of 2023 [5]. - Loans held for investment increased by 23.0% year-over-year to $991.4 million [5]. - Total borrowings were $708.0 million, a 9.9% increase from the previous year [5]. - The net interest margin was 2.80%, down 9.1% from Q3 2024 but up 1.4% from Q4 2023 [5]. - Return on Tangible Common Equity (ROTCE) was 31.8%, up 49.3% from Q3 2024 and 20.5% from Q4 2023 [5]. - Return on Average Assets (ROAA) was 4.1%, an increase of 41.4% from Q3 2024 and 28.1% from Q4 2023 [5]. - The efficiency ratio improved to 55.9%, down from 61.8% in Q3 2024 and 66.6% in Q4 2023 [5]. Financial Highlights for Full Year 2024 - Net income for the full year 2024 was $50.9 million, with EPS of $1.97 per basic and $1.96 per diluted share, compared to $47.3 million and $1.89 per basic and $1.88 per diluted share in 2023 [8]. - Net interest income for the year was $40.3 million, a 51.5% increase from $26.6 million in 2023 [8]. - The net interest margin for the year was 2.87%, up 21.1% from 2.37% in 2023 [8]. - ROTCE for the year was 24.1%, down from 28.0% in 2023, impacted by a prior year's tax benefit [8]. - ROAA for the year was 3.2%, down from 3.6% in 2023, also affected by the tax benefit [8]. - The efficiency ratio improved to 63.2%, down from 71.9% in 2023 [8]. - ALP loan closings for the year were $269.6 million, a 224.9% increase from $83.0 million in 2023 [8]. Strategic Developments - The company completed the sale of its subsidiary Newtek Technology Solutions, Inc. on January 2, 2025 [5]. - The Newtek Advantage now integrates with Intuit QuickBooks, enhancing financial management for independent business owners [5][9]. - The company anticipates $1.0 billion in total SBA 7(a) loan closings for 2025, representing a 6.0% increase over 2024 [8]. Market Position and Future Outlook - The company aims to maintain its current dividend payout, with a yield tracking between 5% and 6% [10]. - The management believes in the ability to generate profits and maintain strong performance metrics, focusing on deposit and loan growth [9][10].