Financial Data and Key Metrics Changes - The company reported earnings per share of $0.70 for basic and $0.69 for diluted, representing a 43% improvement over the previous year and quarter [11] - Net interest income increased by 36% compared to the same three-month period a year earlier [12] - Shareholders' equity rose to $296 million, a 19% increase [13] Business Line Data and Key Metrics Changes - The Alternative Loan Program (ALP) saw $269 million in loans for the year, with over $83 million in ALP loans for the 12 months [14] - The company acquired 950 new business checking accounts, with core business deposits growing to $216 million, an increase of approximately $106 million from the previous year [27] Market Data and Key Metrics Changes - The company reported a return on average assets (ROAA) of 6.3% and a return on tangible common equity (ROTCE) of 48% [28] - The efficiency ratio was reported at 42%, indicating strong operational performance [28] Company Strategy and Development Direction - The company aims to provide technology-enabled financial solutions to over 30 million independent business owners in the U.S. [9] - The transition from a Business Development Corporation to a financial holding company is intended to enhance service offerings and customer acquisition through technology [3][10] - The company positions itself as a disruptor in the banking industry, similar to Uber and Amazon, focusing on technology to improve customer experience and operational efficiency [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage credit risk and maintain profitability despite potential increases in charge-offs [40][41] - The company anticipates a range of $2.10 to $2.50 in earnings per share for 2025, reflecting a cautious but optimistic outlook [31][32] - Management noted that the first quarter is typically the lowest for earnings, with expectations for a ramp-up throughout the year [78] Other Important Information - The company has a significant amount of cash on hand, approximately $325 million, which will be used to pay off higher-cost CDs maturing in the near term [58] - The company has been recognized for its strong non-interest income, which is expected to continue growing [56] Q&A Session Summary Question: Can you provide detail on the cadence of earnings throughout 2025? - Management indicated that the first quarter is typically lower, with a range of $0.28 to $0.32 expected, and a ramp-up in subsequent quarters [80] Question: What drove the $9.4 million markup on loans accounted for under fair value options? - The markup was primarily due to the fair value of ALP loans, which are securitized with strong margins [84] Question: How are charge-off expectations being modeled? - Charge-off expectations are based on historical patterns, with a projected increase to 2% for 2025, reflecting the seasoning of the loan portfolio [90][92] Question: What are the drivers of the negative $7.3 million loan servicing asset revaluation? - This was attributed to the decay in the balance of the 7(a) portfolio, which is not growing, leading to amortization and fair value changes [99] Question: What investments are planned for 2025? - The company plans to invest in resources across various departments to support growth while managing risk [108]

NASDAQ: NEWT Fourth Quarter and Full Year 2024 Financial Results Conference Call February 27, 2025 Hosted and Presented by: Barry Sloane, CEO & President M. Scott Price, CFO Also Attending Nicolas Young, President, Newtek Bank, N.A. Investor Relations Jayne Cavuoto Director of Investor Relations jcavuoto@newtekone.com (212) 273-8179 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 f ...

Call Start: 08:30 January 1, 0000 9:34 AM ET NewtekOne, Inc. (NASDAQ:NEWT) Q4 2024 Earnings Conference Call February 27, 2025 08:30 AM ET Company Participants Barry Sloane - Founder, President & CEO Scott Price - CFO, NewtekOne & Newtek Bank National Association Conference Call Participants Crispin Love - Piper Sandler Steve Moss - Raymond James Tim Switzer - KBW Christopher Nolan - Ladenburg Thalmann Operator Good day, and thank you for standing by. Welcome to the NewtekOne, Inc. Fourth Quarter 2024 Earnin ...

Core Insights - NewtekOne (NEWT) reported revenue of $75.37 million for Q4 2024, a 31% year-over-year increase, with an EPS of $0.69 compared to $0.53 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Financial Performance - Total noninterest income was $64.07 million, surpassing the average estimate of $57.53 million from three analysts [4] - Net interest income was $11.29 million, slightly below the average estimate of $12.30 million from three analysts [4] - Noninterest income from servicing was $5.17 million, exceeding the two-analyst average estimate of $4.92 million [4] - Electronic payment processing income was $10.64 million, below the average estimate of $13.33 million from two analysts [4] - Other noninterest income was $11.74 million, compared to the two-analyst average estimate of $14.31 million [4] - Loan servicing asset revaluation resulted in a loss of $7.28 million, significantly worse than the estimated loss of $1.80 million [4] - Dividend income was $0.39 million, slightly below the average estimate of $0.42 million from two analysts [4] - Net gains on sales of loans were $28.65 million, exceeding the average estimate of $22.26 million from two analysts [4] Stock Performance - NewtekOne shares have returned -6.7% over the past month, compared to a -2.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - NewtekOne (NEWT) reported quarterly earnings of $0.69 per share, exceeding the Zacks Consensus Estimate of $0.66 per share, and up from $0.53 per share a year ago [1] - The company achieved revenues of $75.37 million for the quarter, surpassing the Zacks Consensus Estimate by 7.93%, compared to $57.53 million in the same quarter last year [3] Earnings Performance - The earnings surprise for the recent quarter was 4.55%, following a previous surprise of 9.76% when earnings were $0.45 per share against an expectation of $0.41 [2] - NewtekOne has consistently surpassed consensus EPS estimates over the last four quarters [2] Revenue Insights - The company has also exceeded consensus revenue estimates in each of the last four quarters [3] - The current consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $63.32 million, and for the current fiscal year, it is $2.12 on revenues of $276.51 million [8] Market Performance - NewtekOne shares have declined approximately 4.5% since the beginning of the year, while the S&P 500 has gained 1.3% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Financial - Miscellaneous Services industry, to which NewtekOne belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

Core Viewpoint - NewtekOne, Inc. has raised its full-year 2025 earnings per share (EPS) forecast range to $2.10 to $2.50, reflecting strong financial performance and growth in various segments [1][10]. Financial Highlights for Q4 2024 - Net income for Q4 2024 was $18.3 million, with EPS of $0.70 per basic and $0.69 per diluted share, marking a 55.6% increase from Q3 2024 and a 62.8% increase from Q4 2023 [5]. - Net interest income was $11.3 million, up 2.7% from Q3 2024 and 36.1% from Q4 2023 [5]. - Total assets reached $2.1 billion, a 50.0% increase from $1.4 billion at the end of 2023 [5]. - Loans held for investment increased by 23.0% year-over-year to $991.4 million [5]. - Total borrowings were $708.0 million, a 9.9% increase from the previous year [5]. - The net interest margin was 2.80%, down 9.1% from Q3 2024 but up 1.4% from Q4 2023 [5]. - Return on Tangible Common Equity (ROTCE) was 31.8%, up 49.3% from Q3 2024 and 20.5% from Q4 2023 [5]. - Return on Average Assets (ROAA) was 4.1%, an increase of 41.4% from Q3 2024 and 28.1% from Q4 2023 [5]. - The efficiency ratio improved to 55.9%, down from 61.8% in Q3 2024 and 66.6% in Q4 2023 [5]. Financial Highlights for Full Year 2024 - Net income for the full year 2024 was $50.9 million, with EPS of $1.97 per basic and $1.96 per diluted share, compared to $47.3 million and $1.89 per basic and $1.88 per diluted share in 2023 [8]. - Net interest income for the year was $40.3 million, a 51.5% increase from $26.6 million in 2023 [8]. - The net interest margin for the year was 2.87%, up 21.1% from 2.37% in 2023 [8]. - ROTCE for the year was 24.1%, down from 28.0% in 2023, impacted by a prior year's tax benefit [8]. - ROAA for the year was 3.2%, down from 3.6% in 2023, also affected by the tax benefit [8]. - The efficiency ratio improved to 63.2%, down from 71.9% in 2023 [8]. - ALP loan closings for the year were $269.6 million, a 224.9% increase from $83.0 million in 2023 [8]. Strategic Developments - The company completed the sale of its subsidiary Newtek Technology Solutions, Inc. on January 2, 2025 [5]. - The Newtek Advantage now integrates with Intuit QuickBooks, enhancing financial management for independent business owners [5][9]. - The company anticipates $1.0 billion in total SBA 7(a) loan closings for 2025, representing a 6.0% increase over 2024 [8]. Market Position and Future Outlook - The company aims to maintain its current dividend payout, with a yield tracking between 5% and 6% [10]. - The management believes in the ability to generate profits and maintain strong performance metrics, focusing on deposit and loan growth [9][10].

Core Insights - NewtekOne (NEWT) is expected to report quarterly earnings of $0.65 per share, reflecting a 22.6% increase year-over-year [1] - Analysts forecast revenues of $68.63 million, indicating a 19.3% year-over-year growth [1] - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting stability in analyst projections [1] Earnings Estimates and Projections - Revisions to earnings estimates are crucial for predicting investor actions and have a strong correlation with short-term stock performance [2] - Consensus estimates for key metrics provide a comprehensive view of the company's performance beyond just earnings and revenue [3] Key Financial Metrics - Analysts estimate 'Net interest income' at $12.31 million, up from $8.30 million in the same quarter last year [4] - The consensus for 'Noninterest income- Servicing income' is $4.93 million, slightly down from $4.99 million year-over-year [4] - 'Noninterest income- Electronic payment processing income' is projected to reach $13.33 million, compared to $10.66 million a year ago [5] - 'Noninterest income- Other noninterest income' is expected to be $14.31 million, significantly up from $6.08 million year-over-year [5] - Estimated 'Noninterest income- Net gains on sales of loans' is $20.44 million, compared to $17.25 million in the same quarter last year [6] Stock Performance - NewtekOne shares have decreased by 4.2% over the past month, while the Zacks S&P 500 composite has seen a decline of 0.5% [7] - The company holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [7]

Core Insights - NewtekOne, Inc. has announced the integration of Newtek Advantage with Intuit QuickBooks, enhancing financial management for independent business owners [1][2] - This integration provides real-time access to essential financial data, allowing users to filter information by day, month, or year [2][4] - The Newtek Advantage platform aims to simplify financial operations by consolidating various financial tools into a single dashboard [5] Group 1: Integration Features - The integration allows business owners to view key financial metrics such as revenue, gross profits, net profits, account balances, invoices, and bills in real time [2][4] - Users can access a comprehensive financial solution that includes credit card payment tracking, access to Newtek Bank, payroll services, document storage, and website analytics [2][3] - The platform aggregates data from both QuickBooks Online and QuickBooks Desktop, providing a holistic view of financial operations [4][5] Group 2: Company Overview - NewtekOne, Inc. is a financial holding company that offers a wide range of business and financial solutions to independent business owners across the United States [5][6] - The company has been providing cost-efficient products and services since 1999, focusing on helping businesses grow, control expenses, and reduce risk [5][6] - NewtekOne's offerings include banking, business lending, electronic payment processing, insurance solutions, and technology solutions [6]

Core Viewpoint - NewtekOne, Inc. will report its fourth quarter and full year 2024 financial results on February 26, 2025, with a conference call scheduled for February 27, 2025, at 8:30 am ET [1][2]. Company Overview - NewtekOne, Inc. is a financial holding company that provides a variety of business and financial solutions to independent business owners across all 50 states since 1999 [3]. - The company aims to help businesses grow sales, control expenses, and reduce risk through state-of-the-art, cost-efficient products and services [3]. Business Solutions Offered - NewtekOne's offerings include banking services through Newtek Bank, business lending, SBA lending solutions, electronic payment processing, accounts receivable and inventory financing, insurance solutions, and payroll and benefits solutions [4]. - Additionally, the company provides technology solutions such as cloud computing, data backup, IT consulting, and web services through its subsidiary Intelligent Protection Management Corp. [4].

Core Viewpoint - NewtekOne (NEWT) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in a company's earnings picture, which is a powerful determinant of near-term stock price movements [2][4]. - Rising earnings estimates for NewtekOne indicate an improvement in the company's underlying business, suggesting that investors may respond positively by pushing the stock price higher [5][8]. Zacks Rank System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7][9]. - NewtekOne's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - For the fiscal year ending December 2024, NewtekOne is expected to earn $1.93 per share, reflecting a year-over-year increase of 13.5% [8]. - Over the past three months, the Zacks Consensus Estimate for NewtekOne has increased by 2.9%, indicating a positive trend in earnings estimates [8].