Core Insights - NewtekOne, Inc. reported significant growth in deposits at its banking subsidiary, Newtek Bank, with total deposits reaching $1.03 billion as of December 31, 2024, marking a 97% increase from the previous year and an increase of $884 million since its acquisition in January 2023 [2][3] Deposit Metrics - Total deposits at Newtek Bank as of December 31, 2024, were $1.03 billion, with insured deposits comprising approximately 78% of this total [2] - Core business deposits increased to $216 million, reflecting a 96% growth compared to the same period in 2023 [2] - The bank added 950 new business checking accounts in the fourth quarter of 2024, bringing the total number of accounts to approximately 15,000, up from about 1,400 at the time of acquisition [2][3] Operational Efficiency - Newtek Bank achieved an industry-leading efficiency ratio below 40% for the quarter ended September 30, 2024, indicating successful streamlining of the deposit-taking process [1] - The bank's digital account opening process has been pivotal in acquiring new accounts, supported by U.S.-based representatives available 24/7 [3] Strategic Focus - The company aims to grow its commercial deposit franchise, which is more transactional and lower in cost, while integrating these accounts into its lending and payment processing platforms [1][3] - Newtek Bank plans to leverage its technological advantages and competitive product offerings to continue increasing deposits from affiliates and referral partners in 2025 [3] Business Model Transformation - Since acquiring Newtek Bank, the company has transformed it from a traditional community bank into a technology-enabled bank that acquires deposits digitally [1][3] - The bank's operational model now includes a fully developed back-office operation to support anticipated growth and compliance [3] Future Outlook - The company expresses optimism about its growth prospects moving into 2025, emphasizing the importance of growing transaction-based deposits to reduce funding costs and enhance deposit duration [3]

Business Model Overview - The company operates in the shadow banking industry, focusing on individual investors with specific interests in investment opportunities [1]. Investment Focus - The primary interests of the company include Business Development Companies (BDCs), banks, and firms within low-competition oligopolies [1].

Key Points Company and Industry Information 1. **Company Involved**: NewtekOne, Inc. (NASDAQ:NEWT) and Paltalk IPM. 2. **Event**: Mergers & Acquisitions Conference Call. 3. **Date and Time**: January 2, 2025, 4:15 PM ET. 4. **Participants**: - Barry Sloane - CEO and Chairman of NewtekOne. - Jason Katz - CEO and Chairman of Paltalk IPM. - Various analysts from UBS Financial Services, Piper Sandler, Raymond James, Maxim Group, Landenburg Thalmann & Company, B. Riley, and KBW. [1] Core Views and Arguments 1. **Divestiture of Newtek Technology Solutions**: NewtekOne is divesting Newtek Technology Solutions and merging it into Paltalk IPM. 2. **Management Representation**: Barry Sloane, CEO and Chairman of NewtekOne, and Jason Katz, CEO and Chairman of Paltalk IPM, are present to discuss the merger. 3. **Forward-Looking Statements**: The call includes forward-looking statements based on current beliefs and expectations, subject to significant risks and uncertainties. [4][5] Other Important Content 1. **Q&A Session**: The presentation will be followed by a question-and-answer session. 2. **Recording**: The conference call is being recorded. [3][2]

Core Viewpoint - Paltalk, Inc. is set to acquire Newtek Technology Solutions, Inc. with the closing scheduled for January 2, 2025, following shareholder approval [1][2]. Group 1: Acquisition Details - Paltalk will pay NewtekOne $4,000,000 in cash and issue 4,000,000 shares of a newly created series of non-voting preferred stock as part of the acquisition [10]. - NewtekOne may receive an additional earn-out amount of up to $5,000,000 based on achieving certain cumulative average Adjusted EBITDA thresholds for the fiscal years 2025 and 2026 [10]. - Following the acquisition, NewtekOne will appoint one representative to Paltalk's board of directors [10]. Group 2: Company Background - NewtekOne is a financial holding company providing a range of business and financial solutions to independent business owners across all 50 states [4][7]. - Paltalk is a communications software innovator with over 20 years of technology innovation and holds 8 patents [14]. Group 3: Future Plans - After the acquisition, NewtekOne intends to retain the team from NTS, which consists of 47 individuals, to manage its IT stack [11]. - NewtekOne will continue to refer technology solutions opportunities to Paltalk from existing and future customers [11].

NewtekOne (NASDAQ: NEWT ) was a business development company (BDC) for most of its existence. It had a very good track record with a share price that consistently sold above its NAV (net asset value). However, over 3 years ago, NEWT purchased a bank and changedAre you looking to start building a Fixed Income Portfolio? Conservative Income Portfolio targets the best Preferred Stocks and bonds with the highest margins of safety. We strongly believe that the next decade will belong to fixed income, irrespectiv ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 October 8, 2024 Date of Report (date of Earliest Event Reported) NEWTEKONE, INC. (Exact Name of Company as Specified in its Charter) Maryland 814-01035 46-3755188 (State or Other Jurisdiction of Incorporation or Organization) (Commission File No.) (I.R.S. Employer Identification No.) 4800 T Rex Avenue, Suite 120, Boca Raton, Florida 33431 (Add ...

BOCA RATON, Fla., Nov. 18, 2024 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (NASDAQ: NEWT) announced today that its national bank subsidiary, Newtek Bank, N.A., member FDIC, has launched Newtek Zero-Fee Business Banking™, which provides its commercial clients with true zero-fee business banking depository accounts without hidden banking fees or costs. Newtek Bank does not charge fees to its business banking clients for ACH, wires, monthly service charges, maintenance or activity, overdrafts, or insufficient funds a ...

BOCA RATON, Fla., Nov. 14, 2024 (GLOBE NEWSWIRE) -- NewtekOne, Inc.'s (NASDAQ: NEWT) CEO, President, and Chairman, Barry Sloane, was recently interviewed by Chris Miglino, founder and CEO, of Sequire, at the LD Micro Main Event XVII Investor Conference. During the interview, Mr. Sloane discussed the history of NewtekOne and its importance in the business marketplace today with its ecosystem of offerings available to the approximate 30 million independent business owners across the United States. During this ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____to_____ Commission file number: 814-01035 NEWTEKONE, INC. (Exact name of registrant as specified in its charter) | --- | --- | |-------------------------------- ...

Financial Data and Key Metrics Changes - The company reported earnings per share of $0.45 for Q3 2024, which was above the street consensus of $0.43, and would have been $0.47 without a deferred tax charge of $527,000 [10][11][14] - Return on average assets (ROAA) was 6.3%, and return on tangible common equity (ROTCE) was 49%, with a net interest margin (NIM) of 5.29% [20][11] - The provision for loan losses was higher than expected at $6.9 million, indicating a focus on risk-adjusted returns [11][12] Business Line Data and Key Metrics Changes - The bank experienced a 12% growth in deposits and a 17% growth in loans, with a loan loss reserve coverage of 500 basis points [16] - The Alternative Loan Program (ALP) gained traction, contributing to future earnings per share growth potential [17] - The efficiency ratio stood at 39%, indicating strong operational performance compared to industry peers [18] Market Data and Key Metrics Changes - The company completed a registered public offering of $75 million in bonds, with an 8.625% coupon [19] - The average yield on loans was reported at 11.12%, which does not include gain on sale income [20] - The company is positioned to grow its payment processing segment, which is not directly tied to rate movements [28] Company Strategy and Development Direction - The company aims to provide a frictionless banking experience for customers, leveraging technology to enhance service delivery [29] - There is a focus on integrating the payments business with banking services to create a comprehensive ecosystem for small to medium-sized businesses [38] - The company is transitioning to a financial holding company and divesting its technology unit to focus on core banking operations [56][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a diluted earnings per share range of $2 to $2.25 for 2025, reflecting an 8% to 12.5% increase over 2024 [27][29] - The management team emphasized their experience in risk management and their ability to navigate economic challenges, citing past performance during crises [61][66] - The company is optimistic about its growth trajectory, particularly in the ALP and payment processing segments, which are expected to drive future profitability [28][76] Other Important Information - The company has a strong management team with extensive banking experience, which is crucial for scaling operations [72] - The insurance agency business has seen growth, with a 37% increase in active policies since becoming a bank [53] - The company is focused on maintaining transparency and aligning interests with employees and shareholders [80] Q&A Session Summary Question: What are the expectations for future earnings growth? - Management confirmed guidance for 2025 earnings per share in the range of $2 to $2.25, indicating confidence in continued growth despite market volatility [27][29] Question: How is the company managing risk in its loan portfolio? - Management highlighted their proactive approach to risk management, including higher loan loss reserves and a focus on risk-adjusted returns [11][64] Question: What is the strategy for the payment processing segment? - The company is integrating its payment processing services with banking operations to provide a comprehensive solution for small business clients, enhancing customer value [38][41]