NewtekOne, Inc. Reports Basic and Diluted EPS of $0.36 and $0.35 for the Three Months Ended March 31, 2025

Core Viewpoint - NewtekOne, Inc. reported strong financial results for the first quarter of 2025, with diluted earnings per share (EPS) of $0.35, exceeding the projected range of$0.28 to $0.32, despite a challenging economic environment and increased loan loss provisions [1][4]. Financial Highlights for 1Q25 - Basic EPS was$0.36 and diluted EPS was $0.35, compared to$0.38 for both in 1Q24 [5]. - Book value per common share increased to $10.73, reflecting a year-over-year growth of 13.2$10.17, up 23.0% year-over-year and 8.3% quarter-over-quarter [5]. - Net income before taxes for 1Q25 was approximately $11.6 million, down 11.1$13.1 million in 1Q24 [5]. - Pre-provision net revenue (PPNR) was approximately $25.2 million, an increase of 47.0$17.1 million in 1Q24 [5]. - The efficiency ratio improved to 62.1%, down from 70.6% in 1Q24 [5]. - Return on average assets (ROAA) was 1.81%, with EPS guidance implying a 2025 ROAA range of 2.2%-2.7% [5]. - Return on average equity (ROAE) was 12.7%, with guidance suggesting a 2025 ROAE range of 17.2%-20.2% [5]. - Return on average tangible common equity (ROTCE) was 13.9%, with guidance indicating a 2025 ROTCE range of 18.7%-22.0% [5]. Lending and Other Select Highlights for 1Q25 - SBA 7(a) loan originations were approximately $213.4 million, compared to$211.5 million in 1Q24 [5]. - Alternative Loan Program (ALP) loan originations totaled $68.5 million for 1Q25 [5]. - SBA 504 loan originations were roughly$16.9 million, with $12.9 million in SBA 504 loan sales executed [5]. - Newtek Bank originated$41.2 million in commercial real estate (CRE) loans and 22.7 million in commercial and industrial (C&I) loans held for investment in 1Q25 [5]. - Commercial deposits at Newtek Bank increased by 28 million, or 12% quarter-over-quarter, while core consumer deposits grew by $17 million, or 2$2.10 to $2.50 for 2025, implying a 17% growth in EPS despite a projected near-doubling of the loan loss provision [4]. - The company continues to expect a material reduction in the drag from its Newtek Small Business Finance (NSBF) subsidiary, with losses decreasing more than 50% quarter-over-quarter [6]. - The NSBF portfolio now constitutes 21% of total loans, down from 41% a year ago, indicating a positive trend in loan quality [6]. - The company emphasizes its unique approach as a financial holding company, leveraging non-bank subsidiaries to generate significant earnings [6].