Core Insights - NewtekOne reported diluted earnings per share (GAAP) of $0.52 for Q2 2025, matching analyst forecasts, while total revenue was $70.2 million, missing estimates by $3.7 million or about 5% [1][5] - Year-over-year, diluted earnings per share increased by 21%, and revenue rose by 15% [1][5] - The company highlighted improved profitability and cost control, but noted a shortfall in lending volume and revenue as key areas to monitor [1] Financial Performance - Q2 2025 diluted EPS (GAAP) was $0.52, in line with estimates, compared to $0.43 in Q2 2024, reflecting a 21% increase [2] - Total revenue for Q2 2025 was $70.2 million, falling short of the $73.9 million estimate, but up from $61.1 million in Q2 2024, marking a 15% increase [2] - Pre-provision net revenue (Non-GAAP) grew by 35.5% year-over-year to $27.9 million [2] - Efficiency ratio (Non-GAAP) improved to 60.3%, down 6 percentage points from the previous year [2] Lending and Deposits - SBA 7(a) loan originations decreased by 9%, from $226.5 million in Q2 2024 to $205.6 million in Q2 2025, which is critical for NewtekOne's revenue generation [6] - Commercial deposit balances increased by $50 million, or 19% quarter-over-quarter, while core consumer deposits rose by $14 million, or 2% [8] - The proportion of insured deposits was 78%, and net interest margin rose to 5.46% due to falling deposit costs [8] Technology and Operations - NewtekOne has focused on digital channels and proprietary software to enhance customer acquisition and operational efficiency [4][10] - Platforms like NewTracker and Newtek Advantage have been developed to streamline customer management and service delivery [7][10] - AI is utilized in loan underwriting and document review, improving decision-making speed and accuracy [7] Business Model and Strategy - NewtekOne's business model is centered around digital banking, leveraging technology to reduce costs associated with traditional banking [3][10] - The company aims to grow its SBA 7(a) lending program and expand its deposit base while maintaining cost efficiency and regulatory compliance [4] - The Alternative Loan Program (ALP) is also expanding, with $78.3 million in new loans and a $184 million securitization completed in April 2025 [9][11] Outlook and Guidance - Management reaffirmed its EPS outlook for fiscal 2025, targeting a GAAP range of $2.10 to $2.50, with a reported $0.89 per share in the first half of 2025 [12] - Return on average tangible common equity (non-GAAP) is expected to reach 18.7% to 22.0% in 2025 [12] - Investors are advised to monitor trends in loan originations, deposit growth, and efficiency metrics as the year progresses [13]

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]