NewtekOne, Inc. Reports Basic and Diluted EPS of $0.53 and $0.52 for the Three Months Ended June 30, 2025

Core Viewpoint - NewtekOne, Inc. reported strong financial results for the second quarter of 2025, showcasing significant year-over-year growth in earnings, revenue, and key financial metrics, while also emphasizing its digital banking strategy and focus on independent business owners [1][7][9]. Financial Highlights for 2Q25 - Basic and diluted earnings per share (EPS) were $0.53 and $0.52, respectively, reflecting year-over-year increases of 23% and 21% [7]. - Total revenue for 2Q25 was $70.2 million, up 15% from $61.1 million in 2Q24 [7]. - Net income before taxes was approximately $18.8 million, a 27% increase from $14.8 million in 2Q24 [7]. - Pre-provision net revenue (PPNR) for 2Q25 was approximately $27.9 million, an increase of 35.5% from $20.6 million in 2Q24 [7]. - The efficiency ratio improved to 60.3%, down from 66.3% in 2Q24 [7]. - Return on average assets (ROAA) was 2.50%, while return on average equity (ROAE) was 17.4% [7]. Lending and Other Selected Highlights for 2Q25 - SBA 7(a) loan originations were approximately $205.6 million, compared to $226.5 million in 2Q24 [8]. - Alternative Loan Program (ALP) loan originations totaled $78.3 million for 2Q25 [8]. - The company completed a $184 million securitization backed by $216 million of ALP loans in April 2025 [8]. - Commercial deposits at Newtek Bank increased by $50 million, or 19% quarter-over-quarter [8]. - Insured deposits comprised 78% of total deposits [8]. Post 2Q25 Highlights - On July 21, 2025, the company paid a quarterly cash dividend of $0.19 per share on its outstanding common shares [6]. - The company expects to execute another ALP securitization in the fourth quarter of 2025 [9]. Strategic Focus and Future Outlook - The company aims to operate its bank without traditional banking structures, focusing on digital solutions for independent business owners [9]. - The growth in business deposits and the digital strategy contributed to a decline in the cost of deposits and an expansion in net interest margin [9]. - The company anticipates continued growth beyond 2025, supported by tax incentives for independent business owners [9].