Financial Data and Key Metrics Changes - For 2025, the company reported net income before taxes of approximately $80 million, representing a 16.4% increase, while total revenue reached $284 million, up 10.6% from $257 million in 2024 [5][24] - The EPS for Q4 was $0.65, with a full-year basic EPS of $2.21 and diluted EPS of $2.18, reflecting increases of 12% and 11% over 2024 results [8][24] - Tangible book value grew significantly, ending 2025 at $12.19 compared to approximately $6.92 at the beginning of the year [9][14] Business Line Data and Key Metrics Changes - The alternative loan program (ALP) has shown strong performance, with a focus on long-term loans that provide lower monthly payments and flexibility for clients [4][15] - The efficiency ratio at the holding company improved from 63.2% to 58.3%, while the bank's efficiency ratio is approximately 47% [12][24] - Non-performing loans (NPLs) declined for two consecutive quarters, from 7.3% to 6.9% in Q4 2025 [10][22] Market Data and Key Metrics Changes - The company opened 9,000 new depository accounts and reached a total of 34,000 active depository accounts [3] - Business deposits increased by $34 million in Q4 and $164 million for the year, while consumer deposits grew by $167 million in Q4 and $293 million for the year [11] - The held-for-investment portfolio increased by approximately 44% in 2025, with unguaranteed portions of SBA 7(a) loans comprising roughly 60% of the portfolio [25][26] Company Strategy and Development Direction - The company aims to serve independent business owners and small to medium-sized businesses (SMBs), focusing on providing better loan products with longer amortization periods and no fees [4][5] - The strategic acquisition of National Bank of New York City in January 2023 has significantly expanded the company's asset base, now approximately $1.4 billion to $1.5 billion [6][9] - The company is enhancing its technology and operational infrastructure to support growth and improve customer service, aiming to create a frictionless banking experience [29] Management's Comments on Operating Environment and Future Outlook - Management noted a K-shaped economy, with businesses serving the lower end struggling while those serving the middle and upper markets are performing well [60] - The company expects to see improved business confidence and spending, particularly in technology investments, which could drive growth in 2026 [60] - Management expressed optimism about the future, highlighting the potential for continued growth in deposits and loan originations, particularly in the ALP segment [10][24] Other Important Information - The company has initiated the offering of life insurance to business lending clients, with 25% of borrowers purchasing life insurance through the Newtek Agency [11] - The company has maintained healthy capital ratios while experiencing balance sheet growth and profitability [24][25] Q&A Session Summary Question: What drove the increase in deposit account openings? - Management attributed the 50% increase in deposit account openings to the frictionless digital access for both business and consumer deposits, along with strong margins and competitive rates [38][39] Question: What are the trends in non-interest income and expectations for next year? - Management expects the 7(a) business to pick up, citing recent changes in SBA regulations that may benefit their lending volumes [43][44] Question: How are SBA loans performing compared to competitors? - Management indicated that their charge-off rates are in line with industry averages, while their margins are significantly better than those of larger competitors [88]

Financial Data and Key Metrics Changes - For 2025, the company reported net income before taxes of approximately $80 million, representing a 16.4% increase, while total revenue reached $284 million, up 10.6% from $257 million in 2024 [5][24] - The earnings per share (EPS) for Q4 was $0.65, with the annual EPS for 2025 at $2.21 basic and $2.18 diluted, reflecting increases of 12% and 11% respectively over 2024 [8][24] - Tangible book value grew significantly, ending 2025 at $12.19 compared to approximately $6.92 at the beginning of the year [9][14] Business Line Data and Key Metrics Changes - The alternative loan program (ALP) has shown strong performance, with a significant increase in loan originations and a focus on long-term loans with lower monthly payments [10][15] - The efficiency ratio at the holding company improved from 63.2% to 58.3%, indicating better operational efficiency as assets grew by 33% [12][26] - The payments business contributed approximately $16.8 million of adjusted EBITDA in 2025, with expectations of $17.9 million in 2026 [19] Market Data and Key Metrics Changes - The company opened 9,000 new depository accounts and reached a total of 34,000 active depository accounts, indicating strong market penetration [3][11] - Business deposits increased by $34 million in Q4 and $164 million for the year, while consumer deposits grew by $167 million in Q4 and $293 million for the year [11][12] Company Strategy and Development Direction - The company aims to serve independent business owners and small to medium-sized businesses (SMBs), focusing on providing better loan products with longer amortization periods and lower interest rates [4][5] - The strategic acquisition of National Bank of New York City in January 2023 has significantly expanded the company's asset base and operational capabilities [6][9] - The company is leveraging technology to create a frictionless banking experience, integrating services such as payroll and insurance with banking products [29][30] Management's Comments on Operating Environment and Future Outlook - Management noted a K-shaped economic recovery, with businesses serving the lower end of the market facing challenges, while those serving the middle and upper markets are performing well [60] - The company expects to see continued growth in SBA loan originations and is well-positioned to adapt to changes in the lending environment [44][46] - Management expressed optimism about the future, highlighting the potential for productivity improvements and inflation stabilization in 2026 [60] Other Important Information - The company has initiated the offering of life insurance to business lending clients, with 25% of borrowers purchasing life insurance through the Newtek Agency [12] - The efficiency ratio at the bank is approximately 47%, indicating strong operational performance [12] Q&A Session Summary Question: What drove the increase in deposit account openings? - Management attributed the 50% increase in deposit account openings to the frictionless digital access for both business and consumer deposits, along with competitive rates and no fees [38][41] Question: What are the trends in non-interest income and expectations for next year? - Management expects the 7(a) business to pick up, citing recent changes in SBA regulations that may benefit their lending volumes [43][44] Question: How are SBA loans performing compared to competitors? - Management indicated that their charge-off rates are in line with industry averages, while their margins are significantly better than larger competitors [88]

Financial Data and Key Metrics Changes - For 2025, the company reported net income before taxes of approximately $80 million, representing a 16.4% increase, while total revenue reached $284 million, up 10.6% from $257 million in 2024 [5][12] - The earnings per share (EPS) for Q4 was $0.65, with the annual EPS for 2025 at $2.21 basic and $2.18 diluted, reflecting increases of 12% and 11% respectively over 2024 [8][9] - Tangible book value grew significantly, ending 2025 at $12.19 compared to approximately $6.92 at the beginning of the year [9][13] Business Line Data and Key Metrics Changes - The alternative loan program (ALP) has shown strong performance, with a total of $820 million in originations and low levels of non-performing loans (NPLs) at $27.6 million [10][16] - The payments business contributed approximately $16.8 million of adjusted EBITDA in 2025, with expectations of $17.9 million in 2026 [19] - The insurance agency generated $740 million in pre-tax income for 2025, projected to increase to $1.6 million in 2026 [19] Market Data and Key Metrics Changes - The company opened 9,000 new depository accounts and reached a total of 34,000 active depository accounts, indicating strong market penetration [3][11] - Business deposits increased by $34 million in Q4 and $164 million for the year, while consumer deposits grew by $167 million in Q4 and $293 million for the year [11][12] Company Strategy and Development Direction - The company focuses on serving independent business owners and small to medium-sized businesses (SMBs), emphasizing the underserved nature of this demographic [5][7] - The strategic acquisition of the National Bank of New York City in January 2023 has significantly expanded the company's asset base, now approximately $2.4 billion to $2.5 billion [6][12] - The company aims to leverage technology to provide a frictionless banking experience, enhancing customer service and operational efficiency [28][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing a strong start to 2026 and the successful closing of a major securitization deal [9][10] - The operating environment is characterized as K-shaped, with varying performance across different market segments, but overall business confidence is reported as good [40][41] - The company anticipates continued growth in SBA loan originations and expects to benefit from changes in SBA regulations that may favor its business model [36][38] Other Important Information - The efficiency ratio at the holding company improved from 63.2% to 58.3%, with assets up 33% [12][25] - The company has maintained healthy capital ratios while managing the runoff of its non-bank lending subsidiary, NSBF, which is expected to continue to decline in losses [12][22] Q&A Session Summary Question: What drove the increase in deposit account openings? - Management attributed the increase to the frictionless digital access for both business and consumer deposits, along with strong margins and stable deposit rates [33][34] Question: What are the expectations for non-interest income trends? - Management expects the 7(a) business to pick up again, despite recent disruptions in the SBA world [36][37] Question: How is the company positioned in the SBA loan market? - Management believes their underwriting and business services create better long-term customer relationships, resulting in performance that meets industry averages [53][54]

Core Viewpoint - NewtekOne, Inc. reported strong financial results for the year ended December 31, 2025, with significant growth in earnings per share, total revenue, and improvements in efficiency ratios, indicating a robust operational performance and a solid capital position going into 2026 [1][6][8]. Financial Highlights - Basic and diluted earnings per share (EPS) for 2025 were $2.21 and $2.18, respectively, compared to $1.97 and $1.96 for 2024, reflecting a year-over-year increase of approximately 12.1% [6][24]. - Total revenue for 2025 was $284.8 million, up 10.6% from $257.6 million in 2024 [6][24]. - Net income before taxes for 2025 was approximately $80.0 million, an increase of 16.4% from $68.7 million in 2024 [6][24]. - Pre-provision net revenue (PPNR) for 2025 was approximately $118.7 million, a 25.1% increase from $94.9 million in 2024 [6][24]. - The efficiency ratio improved to 58.3% for 2025 from 63.2% in 2024, indicating better operational efficiency [6][24]. Balance Sheet Highlights - Book value per common share at the end of 2025 was $12.19, up 15.9% year-over-year and 4.0% quarter-over-quarter [6]. - Tangible book value per common share was $11.68, reflecting a 24.4% increase year-over-year and a 4.1% increase quarter-over-quarter [6]. - Total assets increased to $2.74 billion as of December 31, 2025, compared to $2.06 billion at the end of 2024 [20]. Loan Originations and Deposits - The company originated $363 million in Alternative Loan Program (ALP) loans for 2025, up from $270 million in 2024 [7]. - SBA 7(a) loans originated in 2025 totaled $768 million, down from $943 million in 2024 [7]. - Commercial deposits at Newtek Bank increased by $164 million, or 70% year-over-year, while core consumer deposits grew by $293 million, or 40% [7]. Operational Developments - Newtek Bank opened over 9,000 deposit accounts in 4Q25, surpassing its previous quarterly record by approximately 50% [7]. - The company successfully closed a $295 million securitization backed by ALP loans, which was ten times oversubscribed [8][10]. - The company aims to diversify its loan portfolio in 2026 and beyond, leveraging its technology-enabled platform to enhance service delivery [8].

Financial Data and Key Metrics Changes - Total assets reached $2.8 billion, up 8.1% year-over-year [2] - Loans grew by $216 million, or 11%, reflecting strong commercial activity [2] - Deposits increased to $171 million, or 7.9% [2] - Net interest income expanded to 3.27%, improving from 3.16% in the prior year [2] - Non-performing loans stood at 0.14% of total loans, indicating excellent credit quality [3] - Tangible book value per share increased 10.8% year-over-year to $11.97 [3] - GAAP-diluted EPS reported at $0.07, with operational diluted EPS at $0.44 [4] Business Line Data and Key Metrics Changes - Average loans increased $31.9 million, or 6.02% annualized compared to the prior quarter [10] - Gross loan production totaled $196 million in Q4, with $83.5 million from correspondent banking [12] - Average deposits were stable, down $3.9 million compared to the prior quarter but up $314.6 million year-over-year [10] - Net interest income increased by $933,000 on a linked quarter basis, representing 17.4% annualized growth [13] Market Data and Key Metrics Changes - The bank's loan portfolio increased to just under $2.2 billion, with commercial real estate representing 57% [18] - The quality of the loan portfolio remains strong, with a past-due ratio at 0.14% [19] - The bank's securities portfolio ended the quarter with $461.4 million, with a quarterly portfolio yield of 3.01% [15] Company Strategy and Development Direction - The company aims to expand and strengthen its deposit base as a top priority for 2026 [25] - Focus on four strong business lines: Business Banking, Private Client Group, Association Banking, and Correspondent Banking [26] - Plans to launch a new lending and deposit gathering team in targeted small business markets [27] - Emphasis on relationship-driven growth rather than rate-driven [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's business model and strategic actions to enhance earnings power in 2026 [3] - Anticipation of further NIM improvement supported by rate cuts and ongoing deposit strategy execution [13] - The bank's capital ratios exceed regulatory requirements, indicating a solid financial position [6] Other Important Information - The board approved a 25% increase in quarterly cash dividend to $0.12 per share [6] - The company executed a $40 million subordinated debt issuance, primarily used for share repurchase [3] Q&A Session Summary Question: Deposit trends and shrinkage at year-end - Management noted a significant deposit move of over $100 million from a long-term client, which is expected to rebuild over time [35] Question: Loan-to-deposit ratio expectations - Management prefers a loan-to-deposit ratio between 90-95% and anticipates rebuilding deposits in 2026 [39] Question: SBA vertical expansion - The SBA initiative has been growing prudently, aiming for $40-$50 million in annual volume over the next three years [41] Question: Capital strategy and priorities - The focus remains on building capital and returning it to shareholders, with no significant plans for new initiatives [47] Question: Margin expectations for the first quarter - Management expects NIM to be flat to slightly up in the first quarter, with potential for growth from rate cuts [54] Question: Expense outlook - Anticipated expenses to gradually increase with new hires, targeting a low 50% efficiency ratio [65] Question: Fee income outlook - Expected non-interest income to build around $3.5-$3.8 million range for 2026, driven by various fee-generating activities [68]

Core Insights - NewtekOne, Inc. reported significant year-over-year growth in diluted earnings per share (EPS), with increases of approximately 49% for the third quarter of 2025 and 22% year-to-date [5][9]. Financial Performance - For the three months ended September 30, 2025, basic and diluted EPS were $0.68 and $0.67, respectively, compared to $0.45 for the same period in 2024, reflecting year-over-year increases of 51% and 49% [5]. - For the nine months ended September 30, 2025, basic and diluted EPS were $1.57 and $1.54, respectively, compared to $1.26 for the same period in 2024, reflecting year-over-year increases of 25% and 22% [5]. - Total revenue for the third quarter of 2025 was $74.9 million, up 19.3% from $62.8 million in the third quarter of 2024 [5]. - Year-to-date total revenue was $211.5 million, an increase of 16.0% from $182.3 million in the same period of 2024 [5]. Balance Sheet Highlights - Book value per common share at the end of the third quarter of 2025 was $11.72, up 16.4% year-over-year [5]. - Tangible book value per common share was $11.22, reflecting a year-over-year increase of 25.6% [5]. - Total assets as of September 30, 2025, were $2.399 billion, compared to $2.059 billion as of December 31, 2024 [19]. Capital and Funding - The company raised $30 million of Common Equity Tier 1 (CET1) capital and increased Tier 1 capital by issuing $50 million of depositary shares [6]. - Newtek Merchant Solutions refinanced and upsized its borrowing facility with a new $95 million financing solution [6]. Loan Originations - The company originated $104 million in Alternative Loan Program (ALP) loans in the third quarter of 2025, compared to $66 million in the same quarter of 2024 [6]. - SBA 7(a) loans originated in the third quarter of 2025 totaled $187 million, down from $243 million in the same quarter of 2024 [6]. Operational Efficiency - The efficiency ratio improved to 56.3% for the third quarter of 2025, compared to 61.8% for the same quarter in 2024 [5]. - Return on average assets (ROAA) was 3.06% for the third quarter of 2025, while return on average tangible common equity (ROTCE) was 23.7% [5][9]. Strategic Developments - The company has transitioned from a business development company to a financial holding company, enhancing its ability to provide business and financial solutions [9]. - NewtekOne aims to leverage technology to operate as a digital bank, having opened over 21,000 bank accounts digitally [9].

Core Points - Byline Bank has been recognized as the Illinois SBA 7(a) Lender of the Year for the 16th consecutive year, originating $119.6 million in 7(a) loans in fiscal year 2024, which created 742 new jobs statewide [3][5] - In addition to the 7(a) award, Byline Bank was also named the 504 Third-Party Lender of the Year for originating $47.5 million in SBA 504 loans and the Export Lender of the Year for providing $6.1 million to Illinois exporters [4][5] - Byline Bank ranks nationally as a top SBA 7(a) lender with total loans of $504.6 million in FY2024, and it is also a top lender in several other states [6][7] Company Overview - Byline Bank, headquartered in Chicago, is a full-service commercial bank with approximately $9.7 billion in assets and operates 45 branch locations in the Chicago and Milwaukee metropolitan areas [8] - The bank specializes in government-guaranteed lending, particularly in SBA and USDA financing, and is recognized as a National Preferred SBA 7(a) Lender [7][8]

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]