Growth requires capital. Whether you’re expanding facilities, acquiring a competitor, or building a stronger balance sheet for the next quarter, businesses need a strong financing strategy to fund major moves. But when it’s time to secure funding, many businesses overlook one of the most flexible tools available, the SBA 7(a) loan. Designed to help businesses access capital on favorable terms, SBA 7(a) loans can cover everything from working capital to real estate. And they’re not just limited to new bus ...

th BOSTON--(BUSINESS WIRE)--Eastern Bank has been named by the U.S. Small Business Administration (SBA) as the top lender to small businesses for SBA 7(a) loans in Massachusetts for the 17 consecutive year. "Eastern is proud to once again be recognized by the Small Business Administration as the top SBA lender in Massachusetts. This achievement reflects our deep commitment to helping local business owners access the resources they need to grow and thrive,†said Quincy Miller, Vice Chair, President and Chief ...

Core Insights - NewtekOne, Inc. is optimistic about its earnings per share (EPS) for 2025, projecting it to fall within the range of $2.10 to $2.50, following the resolution of the government shutdown [2] - The company has successfully opened nearly 30,000 deposit accounts digitally and is focused on providing a technology-oriented banking experience [2] - NewtekOne plans to present its operational and financial goals for 2026 to investors and analysts on January 8, 2026 [2] Company Overview - NewtekOne 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 has been operational since 1999, providing cost-efficient products and services aimed at helping businesses grow sales, control expenses, and reduce risk [3] Business Solutions - NewtekOne's offerings include banking, business lending, SBA lending solutions, electronic payment processing, accounts receivable financing, inventory financing, insurance solutions, and payroll and benefits solutions [4] - The company also provides technology solutions such as cloud computing, data backup, IT consulting, and web services through its subsidiary Intelligent Protection Management Corp. [4] Financial Activities - NewtekOne is set to launch its largest securitization of alternative loan program (ALP) loans, marking its fourth securitization of ALP loans and 17th overall [6] - The company has repurchased 100,670 shares of its common stock at a weighted average price of $10.20 during the current quarter [6]

Financial Data and Key Metrics Changes - The company's core FFO was negative $10.5 million for Q3 2025, compared to negative $11.5 million in the prior year, indicating a slight improvement [17] - Overall net operating income (NOI) was $7 million, down from $9.8 million in the previous quarter [6][7] - The company reported a negative FFO of $11.1 million, or negative $14.75 per diluted share, compared to negative $28.4 million in the prior year [17] Business Line Data and Key Metrics Changes - Office segment NOI decreased to $5 million in Q3 2025 from $5.4 million in Q3 2024, primarily due to lower rental revenues and occupancy declines [14][15] - Hotel NOI was $850,000 in Q3 2025, down from $1 million in the prior year, impacted by renovation disruptions [16] - Multifamily segment NOI increased to $792,000 in Q3 2025 from $508,000 in the prior year, driven by lower real estate taxes [16] Market Data and Key Metrics Changes - Multifamily occupancy at 701 South Hudson improved to approximately 81% from 68% at the end of the second quarter [9] - San Francisco experienced a third-quarter rent growth of 5.2%, the strongest year-over-year growth rate since 2015 [11] - The office portfolio was 73.6% leased at the end of Q3 2025, with a notable increase to 86.6% when excluding one Oakland property [12] Company Strategy and Development Direction - The company is focused on strengthening liquidity and balance sheet while growing its multifamily business [4] - A definitive agreement was made to sell the lending business for approximately $44 million, considered a non-core asset [5] - The company aims to benefit from a recovering commercial real estate market, supported by lower interest rates and increased office leasing activity [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving cash flow in 2026, driven by office leasing activity, hotel renovations, and multifamily performance [8] - The company believes headwinds from COVID are largely behind, with return-to-office trends creating positive momentum [12] - Management anticipates meaningful opportunities for multifamily NOI growth through rising rents and improved occupancy [11] Other Important Information - Barry Berlin, the CFO, will step down following the sale of the lending division, with Brandon Hill set to assume the role [8] - The company is nearing completion of an $11 million renovation at the Sheraton Grand Sacramento, funded through various sources [12] Q&A Session Summary - There were no questions during the Q&A session, leading to the conclusion of the conference [21]

Financial Data and Key Metrics Changes - The company reported a GAAP loss from continuing operations of $0.13 per common share and distributable earnings were a loss of $0.94 per common share, with $0.04 per common share excluding realized losses on asset sales [13][16] - Net interest income declined to $10.5 million due to a $1.4 billion reduction in the CRE portfolio and $40 million of negative credit migration [13][14] - Book value per share was $10.28 at quarter end, down $0.16 from June 30, primarily due to the dividend covered shortfall [17] Business Line Data and Key Metrics Changes - The core portfolio totaled 1,120 loans with an unpaid principal balance of $5.4 billion, with delinquencies increasing to 5.9% of the total [5][6] - In small business lending operations, $175 million of SBA 7(a) loans were originated, which is 50% below the quarterly target [9][10] - The small business lending platform generated $11 million in net income, adding 280 basis points return on equity before realized losses [10] Market Data and Key Metrics Changes - The Portland mixed-use asset represented 14% of quarter-end equity, with a net operating loss of $330,000 for the hotel and occupancy at 48% [7][8] - The office and retail space in the Portland asset is currently 28% leased and has reached break-even [8] Company Strategy and Development Direction - The company is focused on returning to financial health and profitability through portfolio yield rehabilitation, growth in small business lending, and management of 2026 debt maturities [4] - The strategy includes reducing CRE loan exposure and liquidating non-core assets to improve liquidity [4][11] - The company plans to evaluate the dividend in December based on progress in the business plan and liquidity levels [12][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in refinancing pending debt maturities and emphasized a conservative approach to new investments and dividend policy [11][40] - The company expects to leverage unencumbered assets and additional debt issuance to address maturing obligations [11][28] Other Important Information - The company completed two portfolio sales, netting $85 million from the sale of 21 loans and $24 million from the sale of 196 small balance loans [4][5] - The net increase in provision for loan losses was $38 million, with a decrease in the valuation allowance of $178 million [15][16] Q&A Session Summary Question: What is the right level of leverage for the company going forward? - Management indicated that current gross leverage is around $3.5 million, with a target of less than that on a pro forma basis [19][20] Question: What is the current covenant on the unencumbered asset ratio? - The company confirmed that the unencumbered asset test is well covered within the 1.2 range, with no requirement to be at 1.25 [23][25] Question: What is the rationale for continuing to pay dividends while managing debt maturities? - Management stated that they are adopting an aggressive approach to reposition the balance sheet and will evaluate the dividend in December based on liquidity and business progress [27][28] Question: How is the Portland property being carried on the balance sheet? - The property is carried at fair value for the condos and at cost for the other components [33][34] Question: How does the company view the current market valuations for properties? - Management noted that the Portland asset is unique and not directly comparable to other properties, emphasizing positive trends in hospitality and RevPAR [36][37]

Core Insights - BayFirst Financial Corp. reported a significant net loss of $18.9 million, or $4.66 per share, for Q3 2025, compared to a net loss of $1.2 million in Q2 2025, primarily due to higher provision expenses and one-time charges related to restructuring [1][8][29] Financial Performance - The net interest margin decreased to 3.61% in Q3 2025 from 4.06% in Q2 2025, but increased from 3.34% in Q3 2024 [7][10] - Net interest income from continuing operations was $11.3 million in Q3 2025, down from $12.3 million in Q2 2025, but up from $9.4 million in Q3 2024 [10][11] - Noninterest income was negative $1.0 million in Q3 2025, a significant decrease from $10.8 million in Q2 2025 and $12.3 million in Q3 2024 [14][17] Strategic Initiatives - The company is undergoing a strategic transformation, including exiting the SBA 7(a) lending business and selling a portion of its loan portfolio to Banesco USA for 97% of the retained loans' balances, resulting in a net loss of $5.1 million [3][29] - Management is focused on derisking the balance sheet and enhancing long-term growth and shareholder value, with plans to close the SBA loan sale in Q4 2025 [3][4] Asset Quality - The provision for credit losses in Q3 2025 was $10.9 million, up from $7.3 million in Q2 2025 and $3.1 million in Q3 2024 [24] - The allowance for credit losses on loans was 2.61% of total loans held for investment as of September 30, 2025, compared to 1.65% in Q2 2025 and 1.48% in Q3 2024 [25] Balance Sheet Highlights - Total assets increased by $2.1 million, or 0.2%, to $1.35 billion in Q3 2025, driven by an increase in cash and cash equivalents [20] - Loans held for investment decreased by $127.1 million, or 11.3%, during Q3 2025, primarily due to the transfer of loans to held for sale [21] - Total deposits increased by $7.7 million, or 0.7%, during Q3 2025, totaling $1.17 billion [22] Capital and Liquidity - The Tier 1 leverage ratio was 6.64% as of September 30, 2025, down from 8.11% in Q2 2025 [27] - The bank's liquidity position remains strong, with an on-balance sheet liquidity ratio of 11.31% as of September 30, 2025 [28]

Financial Data and Key Metrics Changes - The company reported net income of $4.9 million for Q3 2025, a 19% increase from $4.1 million in the prior quarter and a 42% increase year over year [16] - Diluted earnings per share rose to $0.34, up from $0.29 in the previous quarter and $0.25 in the same quarter last year [16] - Total end-of-period assets reached nearly $900 million for the first time in the company's history, reflecting robust balance sheet expansion [18] Business Line Data and Key Metrics Changes - Loan originations totaled $1.8 billion, a 21% increase quarter over quarter and a 24% increase year over year [8] - Credit-enhanced balances reached $41 million at the end of Q3 2025, with projections of approximately $115 million by the end of Q4 2025 [9][10] - Quarterly SBA 7(a) loan originations declined 7.8% quarter over quarter but increased 68% year over year [10] Market Data and Key Metrics Changes - Average loan balances totaled $683 million for the quarter, compared to $634 million in the prior quarter [18] - Average interest-bearing deposits increased to $524 million from $494 million in the prior quarter [18] - Net interest margin increased to 9.01% compared to 7.81% in the prior quarter [19] Company Strategy and Development Direction - The company is focused on disciplined growth and operational excellence as key drivers of sustained progress and meaningful returns for shareholders [7] - Strategic partnerships with DreamFi and Tally Technologies are expected to enhance product offerings and support growth in credit-enhanced portfolios [4][5] - The company is evaluating a measured increase in higher-yielding loans while maintaining internal limits established in 2018 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong momentum across the business, despite potential macroeconomic shifts [8] - The recent federal government shutdown may impact SBA lending operations, particularly loan approvals and closings [10][11] - The company anticipates a gradual moderation in non-performing loan (NPL) migration, with expectations of approximately $10 to $12 million in watchlist loans migrating to NPL in Q4 [15] Other Important Information - The total provision for credit losses was $12.8 million in Q3, compared to $4.7 million in the prior quarter [12] - Non-interest income for the quarter was $18.1 million, driven by a substantial increase in strategic program fees and higher gains on loan sales [22] - The efficiency ratio improved to 47.6% from 59.5% in the prior quarter, reflecting strong revenue growth and disciplined expense management [23] Q&A Session Summary Question: Can you discuss the level of concentration you're comfortable with for credit-enhanced loans in your portfolio? - The concentration policies limit each program to about 15% of the portfolio [26] Question: Can you elaborate on the net reductions in FTEs in compliance and risk functions? - The reduction is due to disciplined management rather than automation; the company is analyzing potential efficiency impacts from AI [28] Question: What is the difference between credit enhancement program expenses and credit enhancement guaranteed expenses? - Credit enhancement expenses refer to guarantees, while servicing costs related to those loans are included but not specified [29] Question: Can you quantify the impact of accrued interest reversals in the quarter? - The accrued interest reversal was about $175,000 this quarter compared to $514,000 last quarter [31] Question: Should we expect the entirety of loan growth to come from credit-enhanced products? - Growth will primarily come from credit-enhanced products, but there will also be growth in other areas like SBA and equipment leasing [33] Question: What could cause deviations from the established baseline for credit-enhanced growth in 2026? - Positive deviations could come from improved performance in existing programs, while negative deviations could arise from material weaknesses in performance [36] Question: Can you break apart the decision on credit-enhanced and non-guaranteed loans? - The company has both credit enhancement programs and full risk retention programs, with the latter capturing all yield and credit risk [44] Question: How much margin decrease is expected in Q4? - The margin could fluctuate due to the new partnership with Tally Technologies, which has a different revenue structure [49]

Core Insights - FinWise Bancorp reported strong financial results for the third quarter of 2025, with net income of $4.9 million, a 19% increase from the previous quarter and a 42% increase year-over-year, driven by robust loan originations and disciplined expense management [4][20]. Financial Performance - Loan originations totaled $1.8 billion, up from $1.5 billion in the prior quarter and $1.4 billion year-over-year [6][10]. - Net interest income was $18.6 million, compared to $14.7 million in the previous quarter and $14.8 million in the same quarter last year [9][6]. - Diluted earnings per share (EPS) were $0.34, an increase from $0.29 in the prior quarter and $0.25 year-over-year [6][20]. - The efficiency ratio improved to 47.6%, down from 59.5% in the previous quarter and 67.5% year-over-year, indicating better productivity [18][6]. Asset Quality - Nonperforming loans were recorded at $42.8 million, representing 7.5% of total loans held-for-investment, compared to $39.7 million (7.5%) in the previous quarter and $30.6 million (7.1%) year-over-year [30][31]. - The allowance for credit losses increased to $25.8 million, reflecting a higher provision for credit losses due to growth in the credit-enhanced loan portfolio [32][30]. Balance Sheet Highlights - Total assets reached $899.9 million, up from $842.5 million in the previous quarter and $683.0 million year-over-year [21][22]. - Total deposits increased to $682.3 million, driven by growth in brokered time certificates of deposits [26][25]. - Total shareholders' equity rose to $187.8 million, an increase of $5.8 million from the previous quarter and $17.4 million year-over-year [27][44]. Strategic Initiatives - The company announced two strategic program agreements with DreamFi Inc. and Tallied Technologies, aiming to expand its strategic initiatives [4]. - FinWise continues to focus on disciplined growth and operational excellence to drive long-term progress and sustainable value creation for shareholders [4].

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].

Financial Performance - GAAP Net Income for 3Q25 was $30.8 million, or $0.24 per diluted common share[4] - Net Income excluding notable items for 3Q25 was $31.6 million, or $0.25 per diluted common share, up 29% QoQ[4] - Net interest income for 3Q25 was $127 million, up 8% QoQ[21] - Noninterest income totaled $15.4 million in 3Q25[33] Balance Sheet & Capital - Total deposits were $15.8 billion at 9/30/25, a decrease of 1% QoQ[4, 15] - Gross loans totaled $14.6 billion at 9/30/25, up 1.2% QoQ (5% annualized)[4, 18] - Total capital ratio was 13.83% and TCE ratio was 9.63% at 9/30/25[4] Asset Quality - Nonperforming assets (NPA) were $112 million, representing 0.61% of total assets at 9/30/25[4] - Classified loans at 9/30/25 were down 13% QoQ, representing 1.66% of total loans[4] - Net charge-offs (NCO) were $5 million in 3Q25, or 14bps of average loans, annualized, down 57% QoQ[46] Outlook - The company anticipates approximately 10% growth in net interest income for the full year 2025[47] - The company anticipates approximately 30% growth in noninterest income (excluding notable items) for the full year 2025[47]