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- **Record Growth**: 19% YoY revenue growth, 17% sequential deposit growth, and $11.22 tangible book value per share.
- **ALP Dominance**: Largest ever $325M-$350M securitization with 468-496bps spread, part of 17th transaction in company history.
- **Credit Resilience**: 8.1% NPL ratio (3.8% ex-NSBF), 5.42% allowance for credit losses, and 54% loans with CRE liens.
- **Capital Strength**: 12.5% leverage ratio, $80M capital boost from Series B issuance, and $95M Goldman Sachs refinancing.
- **Strategic Initiatives**: Newtek Triple Play offering, 3-year anniversary balance sheet diversification, and ALP originations targeting $500M+ in 2026.

**【CEO Summary Section】**
- Q3 2025 revenue grew 19% year-over-year, driven by 17% sequential growth in business deposits and 12% in consumer deposits, all acquired without branches or traditional bankers.
- Launched the largest Alternative Loan Program (ALP) securitization in company history ($325M-$350M), marking the 17th such transaction and 4th in this category.
- Tangible book value per share increased to $11.22 from $6.92 in Q1 2023, despite paying $0.76 annual dividend.
- NSBF (nonbank lender) loss narrowed to $14M for the first 9 months of 2025 vs. $28.7M full year 2024, with NPL inflows declining for 5 consecutive months.
- Introduced NewtekOne Triple Play offering: unsecured $10K line of credit + merchant account + payroll account for credit-approved customers.

**【CFO Financial Commentary】**
- Q3 GAAP net income: $42.3M; Non-GAAP EPS: $0.68 (basic) / $0.67 (diluted), up 47% vs. prior year.
- Efficiency ratio improved to 56.3% at holding company (vs. 61.8% prior year), with ROAA of 3.15% vs. industry average ~1.5%.
- Capital structure strengthened with $50M Series B preferred stock issuance and $95M Goldman Sachs refinancing, boosting Tier 1 capital by $80M.
- ALP securitization pipeline: Q4 2025 transaction expected to generate 468-496 basis points spread after servicing fees.

**【Q&A Highlights】**
- **Credit Trends**: NPLs at 8.1% (vs. 3.8% excluding NSBF), but stabilizing as portfolio seasons; 54% of loans have commercial real estate liens.
- **Government Shutdown Impact**: SBA 7(a) originations paused, but ALP originations unaffected; bridge loans used to maintain cash flow for ~45 days until shutdown resolution.
- **ALP Growth**: Q3 2025 originations ~$350M, targeting $500M+ in 2026; 13.17% gross coupon vs. 5-year Treasury + 775bps spread.
- **Capital Allocation**: 24-month lockup on $30M Patriot Financial investment; prioritizing balance sheet utilization over dividend increases.
- **Regulatory Environment**: No regulatory push for higher capital ratios, despite unconventional business model; management team maintains ~95% retention rate since bank acquisition.


NewtekOne, Inc. (NEWT) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: 15% YoY to $70.2M, driven by ALP and deposit growth.
- **ALP Success**: $32.4M net gain from Q2 securitization, 1% charge-off rate.
- **Efficiency**: 60.3% efficiency ratio, 5.46% NIM.
- **SBA Lending**: $1B 2025 originations target despite margin headwinds.
- **Credit Stability**: NSBF loss narrowing, stable charge-offs.

**【CEO Summary Section】**
- Q2 2025 revenue grew 15% YoY to $70.2 million, driven by business deposit growth and ALP (Alternative Loan Program) success.
- Maintained full-year EPS guidance of $2.10-$2.50, with Q2 EPS of $0.53 (basic) and $0.52 (diluted).
- Business deposits increased $50 million sequentially, reducing cost of funds by 28 basis points to 3.71%.
- ALP securitization in Q2 generated $32.4 million net gain, with a 14% yield on residual interest.
- NSBF (non-bank SBA lender) loss narrowed to $3.7 million Q2 vs. $10.7 million Q2 2024.

**【CFO Financial Commentary】**
- GAAP net income: $42.3 million (Q2 2025) vs. $35.1 million (Q2 2024).
- Non-GAAP EPS: $0.53 (Q2 2025) vs. $0.45 (Q2 2024), exceeding expectations.
- Efficiency ratio improved to 60.3% (from 66.3% YoY), with operating expenses up only 4% YoY.
- Net interest margin (NIM) at bank increased 56 basis points to 5.46%.

**【Q&A Key Highlights】**
- **Deposit Growth**: $50M sequential growth in business deposits, driven by integrated solutions (merchant services + payroll).
- **ALP Securitization**: Q2 2025-1 securitization of $218M loans generated $32.4M net gain, with 1% charge-off rate.
- **SBA Lending**: Guided to $1B 7(a) originations for 2025, despite SBA rule changes reducing margins by ~50bps.
- **Credit Quality**: NSBF nonaccruals peaked Q2 2024, with Q2 2025 charge-offs stable at $5.1M.
- **Dividend Policy**: Current dividend (~$0.40 annualized) considered healthy, no immediate plans for increase.

NewtekOne, Inc. (NEWT) Q2 2025 Earnings Call Transcript

- **Sustained Growth**: 47% 2-year equity growth driven by unique SBA lending model, with $8M Q1 2025 government-guaranteed loan fair value gains. 
- **Financial Strength**: 1.18% ROA, 62% efficiency ratio, and 42% non-interest income contribution. 
- **Strategic Positioning**: 20+ year SBA lending track record, adapting to regulatory changes, and targeting 3.85% 2025 deposit cost. 
- **Risk Management**: 8% cumulative charge-off assumption, with seasoning portfolio (18-40 month NPL lifecycle).

**【CEO Summary Section】**
- The company achieved a 47% growth in shareholder equity over two years, driven by a unique business model combining SBA lending, merchant services, and a digital bank platform. 
- Management emphasized a focus on high-margin, government-guaranteed SBA loans (7(a) and 504 programs) with a 20+ year track record, despite higher credit risk and CECL provisioning. 
- The company is transitioning to hold government-guaranteed loan portions on balance sheet (e.g., $8 million Q1 2025), creating fair value gains but with limited duration exposure.

**【CFO Financial Commentary】**
- GAAP net income of $420M, Non-GAAP EPS of $1.08 (vs. $0.31 consensus), with a 5% YoY decline in operating expenses due to cost control and digital transformation. 
- Bank-level metrics: 1.18% ROA, 3.95% cost of deposits, and 62% efficiency ratio. 
- Holding company generates 42% of revenue from non-interest income (e.g., loan servicing fees, securitization gains). 
- Projected 2025 EPS range of $2.30-$2.50 (+17% annualized growth) with Q4 as strongest quarter.

**【Q&A Highlights】**
- **Credit Strategy**: Maintains 8% cumulative charge-off assumption for SBA loans, with 20+ year portfolio seasoning (18-40 month NPL lifecycle). 
- **Market Differentiation**: 7.5% prime rate environment testing, 570bp net interest margin on ALP loans, and 3.8%-3.85% 2025 deposit cost target. 
- **Regulatory Response**: Adapts to SBA rule changes (e.g., 55bp lender service fee, full underwriting for <$1M loans), viewing as opportunity to gain market share from less capitalized competitors.


Newtek Business Services (NEWT)-7 May 25-2025 Q1 Earnings call transcript

- **EPS Beat and Guidance**: Q4 2024 EPS up 43% YoY to $0.70, with 2025 midpoint at $2.30, driven by $750M 7(a) originations.
- **Credit Resilience**: 2025 charge-off rate guided at 2%, stress-tested to 3% with EPS still at $1.80.
- **ALP Momentum**: $500M ALP originations in 2025 with 78 bps charge-offs and sticky 75%-80% insured deposits.
- **Tech Differentiation**: Newtek Advantage platform offers fee-free business solutions, reducing deposit churn.
- **Funding Strategy**: ALP securitizations and 7(a) bond sales offset higher-cost CD runoff.


**【CEO Summary Section】**
- NewtekOne reported Q4 2024 EPS of $0.70 (basic) and $0.69 (diluted), a 43% YoY increase, driven by strong loan and deposit growth.
- 2025 EPS guidance raised to $2.25 (midpoint $2.30), reflecting $750M in 7(a) loan originations with government-backed bonds sold for gains.
- Emphasized diversification of credit risk through ALP loans ($269M in 12 months) and 504 loans with no charge-offs since 2015.
- Highlighted Newtek Advantage platform for sticky deposits (75%-80% insured) and fee-free business solutions.
- Charge-off expectations for 2025 at 2%, with stress testing showing 3% charge-offs would still leave EPS at $1.80.

**【CFO Financial Commentary】**
- Q4 2024 net interest income grew 36% YoY, while noninterest income increased $12M due to higher gains on 7(a) loan sales.
- Provision for credit losses rose to $5.1M (154 bps annualized) due to migration to nonaccrual loans and charge-offs.
- Net interest margin contracted due to higher cash balances and Fed rate cuts, but 2025 outlook includes reducing high-cost CDs.
- Noninterest expenses stable, with salary cuts offsetting tech and professional fees growth.
- Effective tax rate expected to remain around 26% in 2025.

**【Q&A Highlights】**
- **Credit Risk**: 2025 charge-off rate guided at 2%, with seasoning of 2023 vintage loans and stress testing showing resilience.
- **ALP Growth**: $500M ALP originations in 2025, with 78 bps historical charge-offs and high margins.
- **Dividend Policy**: Board-focused decision, but current dividend generosity relative to stock price may limit near-term increases.
- **Funding Strategy**: ALP loans funded via securitizations, while 7(a) loans sold with government guarantees.
- **SBA Pipeline**: Approval-to-funding mismatch due to underwriting rejections and lien discoveries, common across lenders.


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