NewtekOne, Inc. Reports Third Quarter 2024 Earnings of $0.45 per Basic and Diluted Common Share

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].