Financial Data and Key Metrics Changes - The company reported basic and diluted earnings per share of $0.68 and $0.67 for Q3 2025, with year-to-date earnings of $1.57 and $1.54, reflecting a growth rate of 47% and 22% respectively compared to the previous year [11][12] - Revenue growth was reported at 19% for the quarter, with a tangible book value increase from $6.92 to $11.22 per share [12][20] - The efficiency ratio improved from 61.8% to 56.3%, while return on average assets was 3.15%, significantly ahead of industry standards [14][17] Business Line Data and Key Metrics Changes - Core deposits increased, with business deposits rising by $52 million (17%) and consumer deposits by $95 million (12%) [12][20] - The alternative loan program (ALP) is expected to see its largest securitization to date, ranging from $325 million to $350 million, indicating strong growth potential [13][22] - The company has opened 22,000 depository accounts and has 10,000 borrowers in its database, showcasing its ability to operate without traditional banking methods [8][9] Market Data and Key Metrics Changes - The company is focusing on independent business owners, a market that represents 43% of U.S. GDP, with over 36 million business owners in the U.S. [10] - The company has stabilized its credit quality, with non-performing loans (NPLs) at 8.1%, which is high compared to community banks but has been written off or written down [17][19] - The company is avoiding volatile industries such as oil and gas, transportation, and agriculture, while maintaining a strong consumer side [40][41] Company Strategy and Development Direction - The company aims to leverage technology and efficiency to create a future-oriented business model for a technology-enabled bank [3][4] - There is a strategic focus on diversifying the loan portfolio by adding more commercial and industrial (C&I) and commercial real estate (CRE) loans [59] - The company plans to continue its growth trajectory while managing risks effectively, with a goal to enhance transparency and provide better insights into its operations [63][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current economic environment, despite challenges such as a government shutdown [42][44] - The company anticipates that the current credit cycle will stabilize, with expectations of lower provisions and a more favorable lending environment [18][41] - Management highlighted the importance of maintaining a strong capital position and the potential for increased leverage in the future [64] Other Important Information - The company has raised significant capital, including $80 million in Tier 1 capital and $30 million in common equity, to support its growth [13][35] - The company is also focusing on enhancing its payment processing, payroll, and insurance services, which are expected to contribute positively to its overall business model [33] Q&A Session Summary Question: Update on credit trends and market pressures - Management noted that the economy is experiencing a divide, with stress in small businesses due to rising rates, but the consumer side remains strong [40][41] Question: Guidance for Q4 amidst government shutdown - Management did not pull guidance but acknowledged the uncertainty due to the government shutdown, indicating that it could impact loan originations [42][44] Question: Impact of government shutdown on loan processing - Management confirmed that they are still able to process loans that were approved before the shutdown and have provisions to bridge borrowers through this period [43][44] Question: Tier 1 and total capital risk-based ratios - The company reported a Tier 1 capital ratio of about 12.5% and total risk-based capital just shy of 16% [45] Question: SBA lenders leaving the market - Management highlighted that some SBA lenders are exiting due to regulatory changes and increased competition, but the company remains well-positioned to capture market share [70]

Core Viewpoint - NewtekOne, Inc. has announced significant management changes, including the appointment of Peter Downs as President of Newtek Bank and Frank M. DeMaria as Chief Financial Officer, to support the company's growth strategy and enhance its technology-enabled banking services [1][2]. Management Changes - Peter Downs has been appointed as President of Newtek Bank, N.A. [1] - Frank M. DeMaria has been named Chief Financial Officer of NewtekOne, while Scott Price continues as CFO of Newtek Bank [1] - Thomas Soucy has been promoted to Chief Credit Officer of the Bank, and Nicholas Leger has been appointed CFO of several non-bank subsidiaries [2] Company Performance - NewtekOne acquired National Bank of New York City on January 6, 2023, and has successfully transformed it into a technology-enabled digital bank with a national presence [2] - The Bank reported a 42% efficiency ratio, 6% return on assets, and over 40% return on tangible common equity for 2024 [2] Strategic Focus - The company emphasizes the importance of technology in providing financial solutions to independent business owners, utilizing in-house developed applications such as The Newtek Advantage and NewTracker [2] - NewtekOne aims to continue its growth trajectory by embracing technology and enhancing its service offerings [2] Business Solutions Offered - NewtekOne provides a wide range of business and financial solutions, including banking, business lending, SBA lending solutions, electronic payment processing, and technology solutions [3][4]

Core Insights - NewtekOne, Inc. has appointed Peter Downs as President of Newtek Bank, N.A. and Frank M. DeMaria as Chief Financial Officer of the Company, with Scott Price continuing as CFO of Newtek Bank [1][2] - The Company has successfully transformed the National Bank of New York City into a technology-enabled digital bank with a national presence, achieving a 42% efficiency ratio, 6% return on assets, and over 40% return on tangible common equity for 2024 [2] - Management changes are aimed at preparing NewtekOne for future growth, leveraging in-house developed applications to provide superior business and financial solutions to independent business owners [2] Company Overview - 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] - The Company provides state-of-the-art, cost-efficient products and services, including banking, business lending, electronic payment processing, and technology solutions [4] Management Changes - In addition to the appointments of Peter Downs and Frank DeMaria, Thomas Soucy has been promoted to Chief Credit Officer, and Nicholas Leger has been appointed CFO of several non-bank subsidiaries [2] - Andrew Kaplan, the Chief Strategy Officer, has also been added to the board of Newtek Bank [2] Financial Performance - The Bank's efficiency ratio stands at 42%, with a return on assets of 6% and a return on tangible common equity exceeding 40% for the year 2024 [2]

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 ...