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What were the key takeaways from NewtekOne’s earnings call?

- **Revenue and Profit Growth**: 10.6% YoY revenue growth to $284 million, net income up 16.4% to $80 million. EPS of $2.18 (diluted) for 2025.
- **Deposit Expansion**: 9,000 new accounts in Q4, 34,000 active. Business deposits grew $164 million annually, consumer deposits $293 million. 74% of deposits insured.
- **ALP Securitization Success**: 10x oversubscribed January 2026 deal, 32 institutions participating. ALP loans have 48% LTV, 3.3x DSCR, 5% prepay protection.
- **Efficiency and Capital**: Efficiency ratio improved to 58.3%, ROAA 2.78%. Strong capital ratios with $2.5 billion assets.
- **2026 Outlook**: EPS guidance of $2.15-$2.55, driven by $1 billion SBA originations and $500 million ALP growth. NSBF loss expected to decline further.

**【CEO Summary Section】**
- **Q4 and Annual Achievements**: Revenue grew 10.6% YoY to $284 million, with net income up 16.4% to $80 million. Opened 9,000 new depository accounts in Q4, reaching 34,000 active accounts. ALP securitization in January 2026 was 10x oversubscribed, with 32 institutions participating. NSBF loss declined from $28.7 million in 2024 to $20 million in 2025.
- **Strategic Focus**: Emphasized long-amortization loans (10-25 years) with lower monthly payments. 50% of bank borrowers opened business deposit accounts, and 25% purchased life insurance through Newtek. Efficiency ratio improved to 58.3% from 63.2%.
- **Market Position**: Highlighted as a leader in lending to independent businesses, with a focus on underserved SMBs. Tangible book value grew to $12.19 from $6.92 since 2023.

**【CFO Financial Commentary】**
- **Financial Metrics**: GAAP net income of $80 million for 2025, with EPS of $2.18 (diluted). Business deposits grew $164 million annually, consumer deposits $293 million. Cost of deposits declined 16 bps sequentially. Efficiency ratio at the bank was 47%, with ROAA of 2.78%.
- **2026 Guidance**: EPS range of $2.15-$2.55 (midpoint $2.35), driven by $1 billion SBA originations, $500 million ALP originations, and $150 million net C&I/CRE growth. Projected ALP securitization in Q4 2026.
- **Capital Strength**: Maintained strong regulatory capital ratios, with total assets at $2.5 billion.

**【Q&A Highlights】**
- **Deposit Growth**: Driven by digital account opening, no fees, and competitive rates (74% insured). 50% of borrowers opened business accounts, with 25% purchasing life insurance.
- **SBA Originations**: Anticipated pickup due to SBA rule changes (e.g., SBSS score phase-out). Competing with fintechs that lack credit expertise.
- **Charge-offs**: Bank charge-offs $8.2 million Q4, $23 million annually. NSBF loss $6-7 million Q4, $20 million annually.
- **Expense Management**: 2% YoY expense growth vs. 33% asset growth. Focus on deposit functionality and strategic hires, with controlled expense growth in 2026.
- **ALP Momentum**: 2026-1 securitization success suggests continued growth, with 10 new institutions participating. ALP loans have 48% LTV, 3.3x DSCR, and 5% prepay protection.


NewtekOne, Inc. (NEWT) Q4 2025 Earnings Call Transcript

- **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.


Actual											0.21	1.37	0.04	0.43	1.05	1.2	0.56	0.66	0.72	0.75	0.62	0.06	0.45	0.26	0.38	0.53	0.38	0.43	0.45	0.69	0.35	0.5165	0.6643	0.6129
Forecast											0.43	1.46	0.065	0.56	1.0833	0.7433	0.59	0.605	0.605	0.7233	0.6767	0.632	0.356	0.282	0.362	0.5783	0.224	0.415	0.4333	0.6637	0.354	0.52	0.64	0.6817
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-51.16%	-6.16%	-38.46%	-23.21%	-3.07%	+61.44%	-5.08%	+9.09%	+19.01%	+3.69%	-8.38%	-90.51%	+26.40%	-7.80%	+4.97%	-8.35%	+69.64%	+3.61%	+3.85%	+3.96%	-1.13%	-0.67%	+3.80%	-10.09%

NEWT

NEWT fundamentals

NEWT Q4 2025 Earnings

Earnings Call

You can ask Aime

NEWT

NEWT fundamentals

NEWT Q4 2025 Earnings

Earnings Call

NEWT Earnings Call Summary for Q4/20254:30 PM on Jan 29, 2026

NEWT Earnings Call Summary for Q3/20254:30 PM on Oct 29, 2025

NEWT Earnings Call Summary for Q2/20254:30 PM on Jul 28, 2025

NEWT Earnings Call Summary for Q1/20258:30 AM on May 7, 2025

NEWT Earnings Call Summary for Q4/20248:30 AM on Feb 27, 2025

You can ask Aime