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NewtekOne, Inc. and Paltalk, Inc. To Hold Conference Call on January 2, 2025, To Discuss the Anticipated January 2, 2025 Closing of the Divestiture of Newtek Technology Solutions, Inc. to Paltalk, Inc.
Globenewswire· 2024-12-30 21:35
Core Viewpoint - Paltalk, Inc. is set to acquire Newtek Technology Solutions, Inc. with the closing scheduled for January 2, 2025, following shareholder approval [1][2]. Group 1: Acquisition Details - Paltalk will pay NewtekOne $4,000,000 in cash and issue 4,000,000 shares of a newly created series of non-voting preferred stock as part of the acquisition [10]. - NewtekOne may receive an additional earn-out amount of up to $5,000,000 based on achieving certain cumulative average Adjusted EBITDA thresholds for the fiscal years 2025 and 2026 [10]. - Following the acquisition, NewtekOne will appoint one representative to Paltalk's board of directors [10]. Group 2: Company Background - NewtekOne is a financial holding company providing a range of business and financial solutions to independent business owners across all 50 states [4][7]. - Paltalk is a communications software innovator with over 20 years of technology innovation and holds 8 patents [14]. Group 3: Future Plans - After the acquisition, NewtekOne intends to retain the team from NTS, which consists of 47 individuals, to manage its IT stack [11]. - NewtekOne will continue to refer technology solutions opportunities to Paltalk from existing and future customers [11].
Low Leveraged NewtekOne Offers Very Undervalued 8.7% Baby Bond
Seeking Alpha· 2024-12-23 16:30
NewtekOne (NASDAQ: NEWT ) was a business development company (BDC) for most of its existence. It had a very good track record with a share price that consistently sold above its NAV (net asset value). However, over 3 years ago, NEWT purchased a bank and changedAre you looking to start building a Fixed Income Portfolio? Conservative Income Portfolio targets the best Preferred Stocks and bonds with the highest margins of safety. We strongly believe that the next decade will belong to fixed income, irrespectiv ...
Newtek Bank, N.A. Launches Newtek Zero-Fee Business Banking™
GlobeNewswire News Room· 2024-11-18 13:30
Core Viewpoint - NewtekOne, Inc. has launched Newtek Zero-Fee Business Banking™, offering commercial clients true zero-fee business banking accounts without hidden fees or costs [1][2]. Group 1: Newtek Zero-Fee Business Banking™ - Newtek Bank provides commercial clients with no fees for ACH, wires, monthly service charges, maintenance, overdrafts, or insufficient funds, along with no minimum balance requirements [1][2]. - The initiative aims to enhance trust in banking relationships by eliminating hidden fees and costs, allowing clients to focus on growing their businesses [2]. - Clients can utilize the Newtek Zero-Fee Calculator™ on the website to validate the benefits of this banking model, which includes higher interest rates compared to national averages [2]. Group 2: Company Background - NewtekOne, Inc. is a financial holding company that offers a wide range of business and financial solutions to independent business owners across all 50 states [3][4]. - The company has been providing cost-efficient products and services since 1999, helping businesses grow sales, control expenses, and reduce risk [3]. Group 3: Services Offered - NewtekOne's services include banking, business lending, SBA lending solutions, electronic payment processing, technology solutions, eCommerce, accounts receivable financing, insurance solutions, web services, and payroll and benefits solutions [4].
NewtekOne, Inc.'s, CEO, Barry Sloane, Interviewed at the LD Micro Main Event XVII Investor Conference
GlobeNewswire News Room· 2024-11-14 17:10
Core Insights - NewtekOne, Inc. is strategically positioned to serve approximately 30 million independent business owners in the U.S. with a diverse ecosystem of financial and business solutions [1][2] - The company has a 20-year history of providing cost-efficient products and services aimed at helping independent business owners grow sales, control expenses, and reduce risk [2][3] Company Overview - NewtekOne operates as a financial holding company, offering a wide range of solutions under the Newtek brand, including banking, business lending, electronic payment processing, technology solutions, eCommerce, and insurance solutions [2][3] - The company has consolidated subsidiaries that enhance its ability to provide comprehensive services to independent business owners across all 50 states [2][3] Leadership Insights - CEO Barry Sloane emphasized the importance of NewtekOne's accomplishments over its two decades of operation and its potential for continued growth as a bank holding company [1]
NewtekOne(NEWT) - 2024 Q3 - Quarterly Report
2024-11-12 21:41
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to_____ Commission file number: 814-01035 NEWTEKONE, INC. (Exact name of registrant as specified in its charter) | --- | --- | |-------------------------------- ...
NewtekOne(NEWT) - 2024 Q3 - Earnings Call Transcript
2024-11-07 17:18
Financial Data and Key Metrics Changes - The company reported earnings per share of $0.45 for Q3 2024, which was above the street consensus of $0.43, and would have been $0.47 without a deferred tax charge of $527,000 [10][11][14] - Return on average assets (ROAA) was 6.3%, and return on tangible common equity (ROTCE) was 49%, with a net interest margin (NIM) of 5.29% [20][11] - The provision for loan losses was higher than expected at $6.9 million, indicating a focus on risk-adjusted returns [11][12] Business Line Data and Key Metrics Changes - The bank experienced a 12% growth in deposits and a 17% growth in loans, with a loan loss reserve coverage of 500 basis points [16] - The Alternative Loan Program (ALP) gained traction, contributing to future earnings per share growth potential [17] - The efficiency ratio stood at 39%, indicating strong operational performance compared to industry peers [18] Market Data and Key Metrics Changes - The company completed a registered public offering of $75 million in bonds, with an 8.625% coupon [19] - The average yield on loans was reported at 11.12%, which does not include gain on sale income [20] - The company is positioned to grow its payment processing segment, which is not directly tied to rate movements [28] Company Strategy and Development Direction - The company aims to provide a frictionless banking experience for customers, leveraging technology to enhance service delivery [29] - There is a focus on integrating the payments business with banking services to create a comprehensive ecosystem for small to medium-sized businesses [38] - The company is transitioning to a financial holding company and divesting its technology unit to focus on core banking operations [56][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a diluted earnings per share range of $2 to $2.25 for 2025, reflecting an 8% to 12.5% increase over 2024 [27][29] - The management team emphasized their experience in risk management and their ability to navigate economic challenges, citing past performance during crises [61][66] - The company is optimistic about its growth trajectory, particularly in the ALP and payment processing segments, which are expected to drive future profitability [28][76] Other Important Information - The company has a strong management team with extensive banking experience, which is crucial for scaling operations [72] - The insurance agency business has seen growth, with a 37% increase in active policies since becoming a bank [53] - The company is focused on maintaining transparency and aligning interests with employees and shareholders [80] Q&A Session Summary Question: What are the expectations for future earnings growth? - Management confirmed guidance for 2025 earnings per share in the range of $2 to $2.25, indicating confidence in continued growth despite market volatility [27][29] Question: How is the company managing risk in its loan portfolio? - Management highlighted their proactive approach to risk management, including higher loan loss reserves and a focus on risk-adjusted returns [11][64] Question: What is the strategy for the payment processing segment? - The company is integrating its payment processing services with banking operations to provide a comprehensive solution for small business clients, enhancing customer value [38][41]
NewtekOne(NEWT) - 2024 Q3 - Earnings Call Presentation
2024-11-07 13:39
| --- | --- | --- | |-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------| | | | | | | NASDAQ: NEWT Third Quarter 2024 Financial Results Conference Call November 7, 2024 Hosted and Presented by: Barry Sloane, CEO & President ...
NewtekOne (NEWT) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
ZACKS· 2024-11-07 02:00
Core Insights - NewtekOne (NEWT) reported a revenue of $62.83 million for Q3 2024, marking a year-over-year increase of 23.3% and exceeding the Zacks Consensus Estimate of $61.76 million by 1.73% [1] - The company achieved an EPS of $0.45, up from $0.38 a year ago, surpassing the consensus EPS estimate of $0.41 by 9.76% [1] Financial Performance Metrics - Total noninterest income reached $51.85 million, slightly above the average estimate of $51.50 million from three analysts [3] - Net interest income was reported at $10.98 million, exceeding the average estimate of $10.26 million from three analysts [3] - Noninterest income from net gains on sales of loans was $25.68 million, significantly higher than the average estimate of $18.76 million from two analysts [3] - Electronic payment processing income was $11.78 million, below the average estimate of $12.54 million from two analysts [3] - Other noninterest income totaled $11.63 million, surpassing the average estimate of $8.79 million from two analysts [3] - Servicing income was reported at $4.96 million, slightly above the average estimate of $4.75 million from two analysts [3] - Dividend income was $0.37 million, below the average estimate of $0.46 million from two analysts [3] - Technology and IT support income was $3.31 million, significantly lower than the average estimate of $5.92 million from two analysts [3] Stock Performance - Over the past month, NewtekOne shares have returned +3.1%, outperforming the Zacks S&P 500 composite's +0.7% change [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]
NewtekOne (NEWT) Q3 Earnings and Revenues Top Estimates
ZACKS· 2024-11-07 01:01
Core Viewpoint - NewtekOne (NEWT) reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.41 per share, and showing an increase from $0.38 per share a year ago [1][2] Financial Performance - The company achieved revenues of $62.83 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.73% and increasing from $50.97 million year-over-year [3] - NewtekOne has surpassed consensus EPS estimates three times over the last four quarters [2][3] Market Performance - NewtekOne shares have declined approximately 4.4% since the beginning of the year, contrasting with the S&P 500's gain of 21.2% [4] - The current Zacks Rank for NewtekOne is 4 (Sell), indicating expectations of underperformance in the near future [7] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.65 on revenues of $71.32 million, and for the current fiscal year, it is $1.90 on revenues of $252.5 million [8] - The estimate revisions trend for NewtekOne has been unfavorable ahead of the earnings release [7] Industry Context - The Financial - Miscellaneous Services industry, to which NewtekOne belongs, is currently ranked in the top 29% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]
NewtekOne, Inc. Reports Third Quarter 2024 Earnings of $0.45 per Basic and Diluted Common Share
GlobeNewswire News Room· 2024-11-06 21:10
Core Insights - NewtekOne, Inc. reported financial results for the three and nine months ended September 30, 2024, showing growth in net income and earnings per share compared to previous periods [2][4][7]. Financial Highlights for Q3 2024 - Net income for Q3 2024 was $11.9 million, with earnings per share (EPS) of $0.45, reflecting a 4.7% increase from Q2 2024 and Q3 2023 [2]. - Net interest income increased by 20.9% from $9.1 million in Q2 2024 to $11.0 million in Q3 2024, and by 35.8% from $8.1 million in Q3 2023 [2]. - Total assets reached $1.7 billion, a 21.4% increase from $1.4 billion at the end of 2023 [2]. - Loans held for investment rose to $913.0 million, a 13.3% increase from $806.1 million at the end of 2023 [2]. - The net interest margin improved to 3.08%, up 14.1% from Q2 2024 and 18.5% from Q3 2023 [2]. - Return on Tangible Common Equity (ROTCE) was 21.3%, a slight decrease from 21.4% in Q2 2024 and a significant decrease from 24.9% in Q3 2023 [2]. - The efficiency ratio improved to 61.8%, down from 66.3% in Q2 2024 and 63.8% in Q3 2023 [2]. Financial Highlights for YTD Q3 2024 - For the nine months ended September 30, 2024, net income was $32.5 million, with EPS of $1.26, compared to $36.5 million and $1.46 in the same period of 2023 [4]. - Net interest income for the nine months was $29.0 million, a 58.5% increase from $18.3 million in the same period of 2023 [4]. - The efficiency ratio improved to 66.2%, down from 74.1% in the same period of 2023 [4]. Newtek Bank Highlights - Total deposits at Newtek Bank were $745.7 million, a 12.4% increase from $663.7 million in Q2 2024 and a 43.7% increase from $519.1 million at the end of 2023 [5]. - The net interest margin for Newtek Bank was 5.29%, up 9.5% from Q2 2024 and 49.9% from Q3 2023 [5]. - ROTCE for Newtek Bank was 49.3%, an increase from 48.9% in Q2 2024 and 44.1% in Q3 2023 [5]. Lending Highlights - SBA 7(a) loan closings totaled $245.3 million for Q3 2024, a 12.5% increase from $218.0 million in Q3 2023 [6]. - Newtek Bank closed $38.4 million of SBA 504 loans, a 117.0% increase from $17.7 million in Q3 2023 [6]. - Total loans closed across all products reached $372.1 million, a 43.0% increase from $260.2 million in Q3 2023 [6]. Future Outlook - The company maintains its 2024 annual EPS forecast range of $1.85 to $2.05 and forecasts a 2025 EPS range of $2.00 to $2.25 [3][9].