Year-over-Year Quarterly and Year-to-Date Diluted EPS Growth Approximate 49% and 22%BOCA RATON, Fla., Oct. 29, 2025 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (the "Company") (Nasdaq: NEWT) reports its financial and operating results for the three and nine month periods ended September 30, 2025. Financial Highlights for the three and nine months ended September 30, 2025: For the three months ended September 30, 2025 ("3Q25"), basic and diluted earnings per share ("EPS") were $0.68 and $0.67, respectively, vs. $0.4 ...

Core Viewpoint - NewtekOne, Inc. has amended its revolving credit facility with Capital One, increasing the facility from $60 million to $100 million and extending its maturity by two years, which supports the origination of Alternative Loan Program loans before securitization [1][2]. Group 1: Company Overview - NewtekOne is a financial holding company that provides a variety of business and financial solutions to independent business owners across all 50 states since 1999 [3]. - The company's offerings 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]. Group 2: Partnership and Financing - The relationship between NewtekOne and Capital One spans nearly 15 years, with Capital One playing a crucial role in NewtekOne's growth as a non-bank lender and financial holding company [2]. - The recent amendment to the Capital One facility follows a similar amendment to the Deutsche Bank ALP facility, indicating a strategic expansion in financing capabilities [1][2].

Financial Performance Highlights - Second quarter earnings per share (EPS) reached $0.53 basic and $0.52 diluted, while first half EPS exceeded the midpoint of guidance at $0.89 basic and $0.87 diluted respectively[9] - NewtekOne maintains its 2025 EPS guidance range of $2.10-$2.50, projecting an annual EPS growth of 17% at the midpoint[9] - Net income increased by 27% year-over-year, from $10.5 million to $13.3 million[11] - Diluted EPS increased by 21% year-over-year, from $0.43 to $0.52[11] - The company's efficiency ratio improved from 66.3% to 60.3% year-over-year[9, 48] Balance Sheet and Loan Portfolio - Business deposits increased by $50 million, a 19% increase quarter-over-quarter[9] - Total loans increased from $1.33 billion to $2.07 billion year-over-year[21] - Newtek Bank's loans held for investment (HFI) increased by 70% year-over-year, from $451.8 million to $767.8 million[11] - Alternative Loan Program (ALP) loans held for sale (HFS) increased by 114% year-over-year, from $64.4 million to $138.0 million[11] Credit Quality and Loan Sales - Newtek Bank sold $23.5 million of SBA 504 loans and $42.1 million of guaranteed portions of SBA 7(a) loans in 2Q25[9] - The company completed a securitization of ALP loans in April, issuing $184 million of notes backed by $216 million of ALP loans[25] - The weighted average net premium received on the sale of guaranteed portions of SBA 7(a) loans was 111%[52]

Core Viewpoint - NewtekOne, Inc. has successfully closed a $184 million securitization backed by $216 million of Alternative Loan Program (ALP) loans, marking its 16th rated securitization and the third secured by ALP loans [1][2]. Securitization Details - The securitization involved the sale of $155.93 million in Class A Notes, $23.82 million in Class B Notes, and $4.33 million in Class C Notes, collectively backed by $216.56 million of collateral [2]. - The securitization was oversubscribed by two times, indicating strong investor interest [2]. Loan Underwriting and Structure - The company underwrites ALP loans based on the premise that the underlying businesses are the main sources of loan repayments, requiring personal guarantees from equity owners and pledging business assets as collateral [3]. - ALP loans support borrowing needs up to $15 million, providing flexibility compared to government programs and conventional bank loans, with lower monthly payments due to full amortization over 10-25 years [4]. Financial Performance and Projections - The gross weighted-average coupon of the collateral pool is expected to be approximately 13.30%, with a net weighted-average coupon of about 12.30% after servicing fees [4][5]. - The Class A Notes received a rating of "A (low) (sf)" with a yield of 6.338%, while Class B and C Notes received ratings of "BBB (sf)" and "BB (sf)" with yields of 7.838% and 10.338%, respectively [5]. - The company has originated approximately $480 million in ALP loans since 2019, with around $400 million currently outstanding, and projects to originate 2,700 loan units in 2025 [6]. Market Position and Strategy - NewtekOne aims to continue issuing securitizations backed by ALP loans, leveraging its existing infrastructure and expertise to enhance financial performance [4]. - The company has built a loyal investor base for ALP-backed securitization notes, including major money managers and financial institutions [6]. - The transition to a financial holding company and ownership of a nationally chartered bank has diversified funding sources and reduced financing costs [6].