About Byline Bank's Small Business Capital Group Byline Bank receives Illinois SBA Lender of the Year Awards for fiscal year 2024. Pictured, from left: Roberto Herencia; Rehman Valliani; Thomas Abraham; Melanie Noosbond; Patrick Piorkowski, Lender Relations Specialist for the SBA's Illinois District Office; Liama Lohman-Kalas; Michael Knazur; Willette LeGrant, District Director of the SBA's Illinois District Office; Michael Adams; Daniel Branco; Garrett Bright; Mark Fucinato; Alberto Paracchini. CHICAGO, Au ...

Financial Data and Key Metrics Changes - The company reported a revenue growth of 15% in Q2 2025, reaching $78.2 million compared to $61 million in Q2 2024 [14] - Earnings per share (EPS) guidance for 2024 remains unchanged at $2.1 to $2.5, with a midpoint implying a growth rate of 17% [23][24] - The net interest margin at the bank increased by 56 basis points, reaching 5.46% [34] - The cost of deposits declined from 3.99% to 3.71% [34] Business Line Data and Key Metrics Changes - Business deposits grew by $50 million sequentially, with most coming from demand deposit accounts [16] - Losses in Newtek Small Business Finance decreased from $10.7 million to $3.7 million over recent quarters [18] - The alternative loan program (ALP) has completed three successful securitizations and is growing with high-quality loans [19][21] Market Data and Key Metrics Changes - The company estimates that by the end of the year, its loan book will consist of approximately 10,000 borrowers and $4.4 billion in servicing [30] - The average net premium from SBA 7 loans for Q2 2025 was 110.91, with expectations for a slight decrease to 110 for the second half of the year [56] Company Strategy and Development Direction - The company aims to provide integrated solutions for small and medium-sized businesses (SMBs) and independent business owners, focusing on technology and digital banking [6][12] - The strategy includes acquiring deposits below the risk-free rate and enhancing customer analytics and transactional capabilities [27] - The company is positioning itself for future opportunities in stablecoin transactions [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of the year, despite challenges in finding good credits and tariffs impacting borrowing appetite [92] - The company anticipates a higher provision for the second half of the year, with a reserve ratio expected to be between 4.5% to 5.5% [119] Other Important Information - The company has a historical charge-off rate of 1% in its ALP portfolio [36] - The tangible book value per share increased by 3.7% sequentially and 21% year-over-year [35] Q&A Session Summary Question: What helped bring in $50 million of growth on the commercial deposit side? - Management highlighted the benefits of their banking account offerings and integrated solutions for clients, which have driven deposit growth [63][64] Question: What were the total charge-offs this quarter for the held-for-investment portfolio? - Total charge-offs were reported at $5 million, consistent with the previous quarter [68] Question: Can you break down the various drivers that went through the net fair value line item? - The primary component of the negative $11.7 million was the reversal of previous unrealized gains on ALP loans, which were written down to zero [72][73] Question: Will the net gain in residuals and securitizations only occur with ALP securitizations? - Management confirmed that this is the first time they own 100% of the residual, which differs from previous joint ventures [88] Question: What are the expectations for SBA originations for the current year? - Management confirmed they are sticking with the expectation of $1 billion in SBA originations for the year [99]

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]

NASDAQ: NEWT July 28, 2025 Second Quarter 2025 Financial Results Conference Call Hosted and Presented by: Barry Sloane, CEO & President Frank M. DeMaria, CFO, NewtekOne, Inc. M. Scott Price, CFO, Newtek Bank, N.A. Investor Relations Bryce Rowe browe@newtekone.com (212) 273-8292 www.newtekone.com Note Regarding Forward-Looking Statements Certain statements in this presentation and made during this conference call include statements about our plans and future prospects for NewtekOne, Inc and our consolidated ...

Core Insights - FinWise Bancorp reported strong financial performance for the second quarter of 2025, with loan originations reaching $1.5 billion, net income of $4.1 million, and diluted earnings per share of $0.29, reflecting solid growth and effective expense management [2][4][6]. Financial Performance - Loan originations totaled $1.5 billion for the quarter, an increase from $1.3 billion in the previous quarter and $1.2 billion year-over-year [6][10]. - Net income was $4.1 million, up from $3.2 million in the prior quarter and the same period last year [6][19]. - Diluted earnings per share were $0.29, compared to $0.23 in the previous quarter and $0.24 a year ago [6][19]. - The efficiency ratio improved to 59.5%, down from 64.8% in the prior quarter and 66.8% year-over-year, indicating better productivity [6][17]. Asset Quality - Nonperforming loans increased to $39.7 million, representing 7.5% of total loans held-for-investment, compared to $29.9 million (6.1%) in the prior quarter and $27.9 million (6.5%) a year ago [29][30]. - The allowance for credit losses was 3.1% of total loans held-for-investment, up from 2.9% in the previous quarter [29][30]. Balance Sheet - Total assets grew to $842.5 million, up from $804.1 million in the prior quarter and $617.8 million year-over-year [20][43]. - Total shareholders' equity increased to $182.0 million, compared to $177.4 million in the previous quarter and $165.8 million a year ago [25][43]. Non-Interest Income and Expenses - Non-interest income for the quarter was $10.3 million, an increase from $7.8 million in the prior quarter and $5.2 million year-over-year, driven by higher Strategic Program fees and gains on loan sales [13][15]. - Total non-interest expenses rose to $14.9 million, compared to $14.3 million in the previous quarter, primarily due to increased salaries and employee benefits [16][19]. Capital Ratios - The leverage ratio was 18.0%, down from 18.8% in the prior quarter, but still above the regulatory well-capitalized requirement of 9.0% [27].

Financial Performance - Net income was $0.2 million and diluted EPS was $0.02[15] - Total revenue reached $33.5 million, a decrease of 5.6% from 1Q25 but an increase of 3.7% from 2Q24[15] - Pre-tax, pre-provision income was $11.7 million, down 1.8% from 1Q25 but up 17.2% from 2Q24[15] - Net interest margin was 1.96%, and FTE NIM was 2.04%, up 14 and 13 bps respectively from 1Q25[15] Loan Portfolio - Total portfolio loan balances increased by $108.2 million, or 2.5%, from 1Q25[19] - Commercial loan balances increased by $108.2 million, or 3.2%, from 1Q25[19] - 2Q25 funded portfolio loan origination yields were 7.55%, down 23 bps from 1Q25[19] Deposit Update - Total deposits increased 7.1% from 1Q25 and are up 24.0% from 2Q24[22] - Cash and unused borrowing capacity totaled $2.3 billion at June 30, 2025[27] - Loan to deposits ratio remains favorable at 82.3%[27] Credit Quality - Net charge-offs were $14.3 million in 2Q25, primarily in small business lending and franchise finance[7] - Nonperforming loans increased $9.3 million from 1Q25 to $43.5 million as of June 30, 2025, representing 1.00% of total loans[7]

Financial Performance - GAAP net loss for 2Q25 was $(27.9) million, or $(0.22) per diluted share[4], while net income excluding notable items was $24.5 million, or $0.19 per diluted share[4] - Net interest income before provision for credit losses increased by 17% QoQ to $117.53 million[64] - Noninterest income totaled $(23) million, including a net loss of $39 million from legacy securities AFS repositioning[48]; excluding notable items, noninterest income was $16 million, up 1% QoQ and 44% YoY[48] - GAAP noninterest expense was $109 million, including merger-related costs[52]; excluding notable items, noninterest expense was $92 million, up 13% QoQ[52] Balance Sheet & Capital - Total deposits reached $15.9 billion at 6/30/25, up 10% QoQ, largely due to the Territorial acquisition[5, 18] - Loans receivable totaled $14.4 billion at 6/30/25, up 8% QoQ, also largely reflecting the Territorial acquisition[5, 21] - Total capital ratio was 13.76% at 6/30/25[5] - Tangible common equity (TCE) ratio was 9.43% at 6/30/25[5] Asset Quality - Nonperforming assets (NPA) were $113 million, or 0.61% of total assets at 6/30/25[5] - Criticized loans decreased by 8% QoQ to 2.87% of total loans[5] - Net charge-offs (NCO) were $12 million in 2Q25, or 33bps of average loans, annualized[59] Strategic Initiatives - The acquisition of Territorial Bancorp Inc added $1.7 billion of stable, low-cost deposits and $1.0 billion of residential mortgage loans[5] - Repositioned $418 million of legacy investment securities available-for-sale (AFS) in June 2025, expected to contribute approximately $12 million to interest income annually[5, 36] Outlook - The company anticipates high single-digit % growth for end-of-period loans in 2025[60] - The company anticipates high single-digit % growth for net interest income in 2025[60] - The company anticipates upper-20s % growth for noninterest income (excluding notable items) in 2025[60]

Financial Data and Key Metrics Changes - The company reported earnings per share of 21 cents, consistent with the previous quarter, driven by healthy PPNR and growth offset by elevated provisions [23][24] - Core PPNR increased by 27% year-over-year to $50 million, primarily due to rising net interest income and strong balance growth [23][24] - Net interest income reached $101 million for the first time, with a net interest margin expansion of five basis points to 3.2% [33] Business Line Data and Key Metrics Changes - Q1 2025 loan originations totaled approximately $1.4 billion, marking a 73% increase year-over-year and the largest Q1 loan production in bank history [30] - 60% of loan production came from the small business banking team, primarily through SBA 7(a) loans, reflecting a 55% year-over-year increase [31] - Commercial lending team contributed 40% of loan production, showing a 110% increase compared to the prior year [31] Market Data and Key Metrics Changes - Customer deposits grew by 8% linked quarter, continuing a historical trend of strong growth in Q1 [26] - Noninterest-bearing checking balances increased by 31% linked quarter, indicating momentum in the business checking product [27] - The company maintained a healthy loan pipeline despite economic uncertainties, with no decline in potential borrowers' appetite [26] Company Strategy and Development Direction - The company is focused on building full relationships with customers through primary checking relationships, which have quadrupled over the past year [11] - Continued emphasis on small dollar SBA loan programs and acquiring checking relationships is expected to enhance stability and provide insights into borrowers' cash flows [11][12] - The company is well-positioned to benefit from changes in SBA regulations, which may provide a competitive advantage [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the economic environment while acknowledging the challenges posed by inflation and rising interest rates [15][29] - The company is proactively building reserves and monitoring credit quality, with a focus on maintaining a healthy risk profile [44][45] - Management remains committed to supporting small business borrowers through the current credit cycle, emphasizing a proactive approach to credit management [86][88] Other Important Information - The company reported that over 40% of its assets are cash or government guaranteed, providing a strong capital position [16] - The company has seen a consistent demand for government-guaranteed SBA loans in the secondary market, generating significant gain on sale revenue [40] - The company is investing in technology to enhance efficiency in loan processing, particularly for small dollar loans [70][103] Q&A Session Summary Question: Thoughts on margin and NII trajectory - Management acknowledged the difficulty in providing forward-looking guidance on margin due to the current economic environment but remains focused on controlling what can be controlled [51][52] Question: Loan growth and pipeline in the current macro environment - Management expressed comfort with the quality of loan production and remains active in monitoring credit approvals [55] Question: Impact of SBA changes on existing loans and fees - Management clarified that reinstated fees do not impact existing loans and are paid by borrowers as part of the loan package [60][62] Question: Profitability of Live Oak Express with new underwriting requirements - Management believes profitability will remain stable due to ongoing technology improvements, despite longer closing times [70][72] Question: Focus areas amid economic uncertainty - Management is closely monitoring the SBA portfolio and commercial lending, with a holistic approach to managing risks [82][84]