NewtekOne, Inc.’s ( NEWT ) 8.625% fixed-rate senior notes due 2029 ( NEWTH ) offer an attractive yield. Since my last analysis on NEWTH, NewtekOne has grown and improved in financial health. Its transformation from business development company (“BDC”) to financial holding company wasAn economics graduate with a passion for financial history; I apply my knowledge to markets in an effort to hopelessly predict trends and spot value. All opinions are my own and should not be taken seriously.Analyst’s Disclosure ...

Fast-fashion chain Primark to name Tonge as permanent CEO, Sky News reports | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]A view of a Primark store on Oxford Street in London, Britain, March 31, 2025. REUTERS/Hannah McKay [Purchase Licensing Rights, opens new tab]- Companies[Associated British Foods PLC]FollowFeb 25 (Reuters) - Primark owner Associated British Foods [(ABF.L), opens new tab] is close to name Eoin Tonge as the fast ...

BOCA RATON, Fla., Feb. 17, 2026 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (the “Company”) (NASDAQ: NEWT) is pleased that its bank subsidiary, Newtek Bank, N.A., (the “Bank”) was recently recognized for its lending capabilities and for its deposit account offering. The Coleman Report named Newtek Bank “SBA Bank Lender of the Year.” The Coleman Report is a leading authority on loan programs of the U.S. Small Business Administration (SBA).NerdWallet honored Newtek Bank for having the “Best Savings Account 2026.” In ...

Core Viewpoint - NewtekOne, Inc. has successfully retired $95 million of fixed-rate senior notes, marking a significant step in its financial management and transition from a Business Development Company (BDC) to a technology-enabled financial holding company [1]. Group 1: Financial Management - The company funded the $95 million repayment using $87.1 million of working capital and an exchange offer that involved $7.9 million of NEWTZ notes being exchanged for newly issued NEWTO notes [1]. - Since 2018, NewtekOne has redeemed a total of $294 million in senior notes, demonstrating a consistent strategy in managing its debt obligations [1]. - The retired notes were the last remnants of debt issued as a BDC, indicating a shift in the company's capital structure [1]. Group 2: Company History and Stability - NewtekOne has a 25-year history as a public company, successfully navigating various economic challenges, including 9/11, the Great Financial Crisis, and the COVID-19 pandemic [1]. - The company has maintained a strong track record, having never missed a principal or interest payment on its debt [1]. - The 17 securitizations issued by the company have either maintained their initial investment-grade ratings or been upgraded, with none being placed on credit watch [1]. Group 3: Business Solutions Offered - NewtekOne provides a wide range of business and financial solutions, including banking, business lending, SBA lending solutions, electronic payment processing, accounts receivable financing, insurance solutions, and payroll and benefits solutions [2][3]. - The company also offers technology solutions such as cloud computing, data backup, IT consulting, and web services through its subsidiary Intelligent Protection Management Corp [3].

Core Insights - NewtekOne (NEWT) reported a revenue of $73.33 million for the quarter ended December 2025, reflecting a year-over-year decline of 2.7% and an EPS of $0.65, down from $0.69 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $80.99 million, resulting in a surprise of -9.45% [1] - The company did not deliver an EPS surprise, as the consensus EPS estimate was also $0.65 [1] Financial Performance Metrics - NewtekOne's efficiency ratio was reported at 55.2%, which is higher than the two-analyst average estimate of 52.7% [4] - Total noninterest income was $55.85 million, below the average estimate of $62.12 million based on three analysts [4] - Net interest income stood at $17.48 million, compared to the average estimate of $18.87 million from three analysts [4] - Noninterest income from servicing was $5.2 million, slightly below the average estimate of $5.5 million based on two analysts [4] - Electronic payment processing income was reported at $10.45 million, compared to the average estimate of $12.27 million from two analysts [4] - Other noninterest income was $8.81 million, below the two-analyst average estimate of $10.73 million [4] - The net loss on loan servicing assets was reported at -$4.19 million, better than the average estimate of -$4.75 million from two analysts [4] - Dividend income was $0.5 million, slightly above the average estimate of $0.44 million based on two analysts [4] - Net gains on sales of loans were reported at $9.51 million, significantly lower than the two-analyst average estimate of $16.55 million [4] Stock Performance - Over the past month, shares of NewtekOne have returned +20.4%, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

分组1 - NewtekOne reported quarterly earnings of $0.65 per share, matching the Zacks Consensus Estimate, but down from $0.69 per share a year ago [1] - The company posted revenues of $73.33 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 9.45%, compared to $75.37 million in the same quarter last year [2] - Over the last four quarters, NewtekOne has surpassed consensus EPS estimates three times, but has topped consensus revenue estimates only once [2] 分组2 - The stock has gained approximately 20.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $77.28 million, and for the current fiscal year, it is $2.31 on revenues of $331.56 million [7] - The Zacks Industry Rank for Financial - Miscellaneous Services is in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

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]

NASDAQ: NEWT January 29, 2026 Fourth Quarter 2025 Financial Results Conference Call Hosted and Presented by: Barry Sloane, President & CEO Frank M. DeMaria, EVP & CFO 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 the plans and future prospects for NewtekOne, Inc and consolidated subsidiaries (the "Company") and our industry that ...