2026 EPS Guidance Range of $1.70-$1.80 Maintained

BOCA RATON, Fla., Oct. 28, 2026 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (the "Company") (Nasdaq: NEWT) reports its financial and operating results for the three months ended September 30, 2026.

Financial Highlights for the three months ended September 30, 2026:

  • For the three months ended September 30, 2026 ("3Q26"), basic and diluted earnings per share ("EPS") were $0.34 and $0.34 vs. $0.68 and $0.67, respectively, for the three months ended September 30, 2025 ("3Q25").
  • Book value per common share ended 3Q26 at $12.80, up Y/Y and Q/Q by 9.2% and 1.3%, respectively.
  • Tangible book value per common share1 ended 3Q26 at $12.30, up Y/Y and Q/Q by 9.6% and 1.4%, respectively.
  • The efficiency ratio1 was 58.7% for 3Q26 compared to 56.3% for 3Q25.
  • Return on average assets (“ROAA”)1 was 1.30% for 3Q26 compared to 3.14% for 3Q25.
  • Return on average equity ("ROAE")1 was 9.2% for 3Q26 compared to 20.4% for 3Q25.
  • Return on average tangible common equity (“ROTCE”)1 was 10.8% for 3Q26 compared to 24.0% for 3Q25.

Selected Balance Sheet and Other Highlights for 3Q26

  • Non-affiliate business deposits at Newtek Bank, N.A. (the "Bank") increased $13 million, or 4% Q/Q, and $109 million, or 48% Y/Y, while core consumer deposits grew $231 million, or 13% Q/Q, and $1.1 billion, or 126% Y/Y.
  • Since the acquisition of the Bank in early 2023, roughly 62% of Newtek Bank's business lending clients have opened a business deposit account.
  • Insured deposits comprised 79% of deposits as of September 30, 2026.
  • Originated $75 million of C&I LA Loans in 3Q26 compared to $104 million in 3Q25.
  • Originated $215 million of SBA 7(a) loans in 3Q26 compared to $187 million in 3Q25.
  • Originated $45 million of SBA 504 loans in 3Q26 compared to $28 million in 3Q25.
  • Originated $28 million and $23 million of CRE and C&I loans HFI in 3Q26 compared to $18 million and $19 million in 3Q25.

Post 3Q26 Events

  • On October 1, 2026, the Company paid a dividend on the Company’s outstanding Series B Preferred in the amount of $21.25 per Preferred Share, or $0.53125 per depositary share, which is equivalent to 1/40th of the dividend on the Preferred Shares.
  • On October 1, 2026, the Company paid a quarterly cash dividend of $0.19 per share on its outstanding common shares.

Commenting on quarterly operating results, Barry Sloane, CEO, President, and Chairman, said, “We reported 3Q26 basic and diluted EPS of $0.34 and are comfortable with our previously issued 2026 EPS guidance range of $1.70-$1.80. We were pleased to see momentum from the first half of 2026 continue into the third quarter. Deposit balances more than doubled on a year-over-year basis, increasing by $1.3 billion to end 3Q26 at $2.5 billion,while the number of Newtek Bank deposit accounts exceeded 47,000 accounts compared to roughly 21,800 accounts at the end of 3Q25 and approximately 1,500 deposit accounts when we acquired the Bank in January 2023. We believe both consumer and business deposit customers are attracted to Newtek Bank because of the value we are delivering to them through attractive rates of interest, no fees, frictionless digital account opening, and on-demand, on-camera support from human beings in the United States 24/7/365; Newtek Bank business customers also get access to our online business portal, The Newtek Advantage®, to help them manage their businesses more effectively and efficiently. Both NewtekOne and Newtek Bank are highly rated by Trustpilot with 4.9 stars and 4.5 stars out of 5.0, respectively, while the Bank’s rating of four stars on depositaccounts.com compares favorably to ratings of less than two stars for several of the largest banks in the U.S.

"The deposit gathering engine is crucial to fund the loan growth we are generating. For the first nine months of 2026, funded loans totaled approximately $1.2 billion, up roughly 12% compared to the $1.1 billion for the first nine months of 2025; SBA 7(a) and longer-amortizing C&I ("C&I LA") loan originations comprised 56% and 20%, respectively, of year-to-date ("YTD") originations. Loans on balance sheet ended 3Q26 at over $2.7 billion, up 46% compared to $1.9 billion for 3Q25. Importantly, for the Small Business Administration's ("SBA") fiscal year ending September 30, 2026, we reestablished ourselves as the top originator of SBA 7(a) loans, ranking number one by loan approval count and number two by dollars of loan approvals, which shows that our commitment to and relationship with the independent business owner community continues to flourish. One more item to note on the topic of loans: we anticipate bringing a securitization backed by C&I LA loans to market in the first quarter of 2027, which would represent our fifth securitization backed by C&I LA loans and our 18th overall. Importantly, none of the previous 17 securitizations have been downgraded or been put on credit watch.

"As we discussed on our second quarter 2026 conference call, we are holding more guaranteed portions of SBA 7(a) loans on our balance sheet than we have in the past, which is having the anticipated effect of generating net interest income growth and transitioning the mix of revenue away from gain on sale income to recurring net interest income. 3Q26 net interest income of $19 million climbed 26% Q/Q and 30% Y/Y. Net interest income for the first nine months of 2026 increased 20% over the first nine months of 2025 and comprised nearly 23.5% of YTD revenue compared to 20.1% for the first nine months of 2025.

"Since acquiring the Bank in early 2023, we have consistently maintained a healthy pace of balance sheet growth, but because we built the Company's operating infrastructure to scale, the pace of operating expense growth has been more moderate, allowing us to capture operating leverage with loan and deposit growth and to demonstrate attractive operating efficiency. Relative to 3Q25, 3Q26 operating expenses were flat against asset growth of 47%; YTD operating expense growth was roughly 4%. We continue to be pleased with our operating efficiency ratio, which came in at 58.7% for 3Q26 and 59.8% for the first nine months of 2026.  

"Our operating model's ability to capture operating leverage is rooted in the technology we have developed and integrated over the last 28 years. NewtekOne was founded in 1998 to provide independent business owners in the United States with business and financial solutions to help them grow revenue, reduce costs, and reduce risk. Today, we are capable of offering our independent business owner clients five fully digital solutions without the use of traditional bankers, brokers, or business development officers through one integrated platform, and we aim to deliver those solutions in an efficient, frictionless manner. Instead of having to chase down a relationship manager or go into a branch, NewtekOne’s customers can easily reach our customer service representatives who are on-demand and on-camera 24/7/365 and based in the United States. And because we built and own the integrated platform with our patented NewTracker® operating system at the center of the platform, it is constantly evolving to enhance the customer experience.

"In the last quarter alone, we launched the automated integration of a comprehensive offering of insurance products into our loan origination platform, which provides borrowers with instant access to bindable quotes on lender-compliant insurance policies, thereby satisfying loan closing requirements and enabling an expedited loan closing process. Using data submitted in the loan application, borrower applicants are automatically presented with an offering of an insurance package that includes key person life insurance policies of up to $3 million, assigned to the loan, as well as flood insurance coverage, where applicable, and property & casualty insurance. We also expanded our client service platform to include Glia, which adds advanced digital engagement and artificial intelligence to NewtekOne's highly rated 24/7/365 client support model to make that support model substantially more informed and effective. In addition, we broadened the digital ecosystem available to our clients by expanding connectivity between Newtek Bank accounts and the accounting and business applications independent business owners rely on to manage their businesses. Lastly, we added to our real time payments platform with Zelle® for eligible small business banking clients.

"Almost four years ago, we converted to a bank holding company to round out the ecosystem we developed for our target customers: independent business owners. We are extremely proud of having built a technologically enabled bank with a business model that is unlike 99% of the banking industry. Our operating model emphasizes digital account opening, an automated, frictionless loan origination platform, automated lead generation, little-to-no cost of customer acquisition, real time payments/money movement, wider lending margins, and a proprietary, internally-developed technology stack highlighted by the patented NewTracker® operating system and the patent-pending Newtek Advantage® online business portal."

Mr. Sloane concluded, "We believe there is tremendous value in the platform we have built and the technology we have developed, and we believe that value is not currently reflected in our market capitalization. In fact, we believe that the proposed $340 million acquisition of Bluevine Inc. by Valley National Bancorp, which was announced at the end of September, is one example of value being ascribed to a fully digital platform of business and financial solutions for the independent business owner community. We are working hard to have NewtekOne’s value properly recognized and exploring all strategic alternatives intended to help the market better recognize that value."

Third Quarter 2026 Conference Call and Webcast

A conference call to discuss the third quarter 2026 financial and operating results will be hosted by Barry Sloane, Chief Executive Officer, President and Chairman, and Frank M. DeMaria, Chief Financial Officer, today, Wednesday, October 28, 2026, at 4:30 p.m. ET.

Please note, to attend the conference call or webcast, participants should register online at NewtekOne, Inc. Third Quarter 2026 Financial Results Conference Call. To receive a dial-in number, participants are requested to register at a minimum 15 minutes before the start of the call. The corresponding presentation will be available in the ‘Events & Presentations’ section of the Investor Relations portion of NewtekOne's website at NewtekOne, Inc. Third Quarter 2026 Financial Results Conference Call. A replay of the call with the corresponding presentation will be available on NewtekOne's website shortly following the live presentation and will be available for a period of one year.

Note Regarding Dividend Payments

Amount and timing of dividends, if any, remain subject to the discretion of the Company's Board of Directors.

About NewtekOne, Inc.

NewtekOne®, Your Business Solutions Company®, is a financial holding company, which along with its bank and non-bank consolidated subsidiaries (collectively, “NewtekOne”), provides a wide range of business and financial solutions under the Newtek® brand to independent business owners. Since 1999, NewtekOne has provided state-of-the-art, cost-efficient products and services and efficient business strategies to independent business owners across all 50 states to help them grow their sales, control their expenses, and reduce their risk.

NewtekOne’s and its subsidiaries’ business and financial solutions include: banking (Newtek Bank, N.A.), Business Lending, SBA Lending Solutions, Electronic Payment Processing, Accounts Receivable Financing & Inventory Financing, Insurance Solutions and Payroll and Benefits Solutions. In addition, NewtekOne offers its clients the Technology Solutions (Cloud Computing, Data Backup, Storage and Retrieval, IT Consulting and Web Services) provided by Intelligent Protection Management Corp. (IPM.com)

Newtek®, NewtekOne®, Newtek Bank®, National Association, Your Business Solutions Company®, One Solution for All Your Business Needs® and Newtek Advantage® are registered trademarks of NewtekOne, Inc.

Note Regarding Forward-Looking Statements

Certain statements in this press release are “forward-looking statements” within the meaning of the rules and regulations of the Private Securities Litigation and Reform Act of 1995. Information regarding the Company’s assets under supervision, capital ratios, risk-weighted assets, supplementary leverage ratio and balance sheet data consists of preliminary estimates and are subject to change with our filings with regulatory agencies and the filing of the Company's Form 10-Q for the period ended September 30, 2026. These statements and other forward-looking statements herein are based on the current beliefs and expectations of NewtekOne's management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. See “Note Regarding Forward-Looking Statements” and the sections entitled “Risk Factors” in our filings with the Securities and Exchange Commission which are available on NewtekOne's website (https://investor.newtekbusinessservices.com/sec-filings) and on the Securities and Exchange Commission’s website (www.sec.gov). Any forward-looking statements made by or on behalf of NewtekOne speak only as to the date they are made, and NewtekOne does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.

SOURCE: NewtekOne, Inc.

Investor Relations & Public Relations
Contact: Bryce Rowe
Telephone: (212) 273-8292 / browe@newtekone.com

 
NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In Thousands, except for Per Share Data)
 September 30, 2026 December 31, 2025
 (unaudited)  
ASSETS   
Cash and due from banks$3,785  $4,196 
Restricted cash (amounts related to VIEs of $6.3 million and $6.3 million, respectively) 23,172   26,477 
Interest bearing deposits in banks 277,506   279,618 
Total cash and cash equivalents 304,463   310,291 
Debt securities available-for-sale, at fair value 7,448   16,829 
Loans held for sale, at fair value 654,265   971,837 
Loans held for sale, at LCM 18,194   26,532 
Loans held for investment, at fair value (amounts related to VIEs of $166.7 million and $198.4 million, respectively) 823,742   281,198 
Loans held for investment, at amortized cost, net of deferred fees and costs 1,309,278   896,689 
Allowance for credit losses (57,052)  (45,226)
Loans held for investment, at amortized cost, net 1,252,226   851,463 
Federal Home Loan Bank and Federal Reserve Bank stock 4,468   4,234 
Settlement receivable —   438 
Residuals in securitizations, at fair value 205,501   76,701 
Joint ventures and other non-control investments, at fair value (cost of $36,294 and $36,692), respectively 43,166   47,719 
Goodwill and intangibles 14,493   14,597 
Right of use assets 2,463   2,790 
Deferred tax asset, net 14,054   — 
Servicing assets, at fair value 14,811   15,358 
Servicing assets, at LCM 35,803   29,564 
Other assets 130,915   95,268 
Total assets$3,526,012  $2,744,819 
    
LIABILITIES AND SHAREHOLDERS’ EQUITY   
Liabilities:   
Deposits:   
Noninterest-bearing$68,003  $53,873 
Interest-bearing 2,443,216   1,364,535 
Total deposits 2,511,219   1,418,408 
Borrowings (including borrowings of VIEs of $96.4 million and $127.1 million, respectively) 539,465   819,888 
Lease liabilities 2,535   2,874 
Deferred tax liabilities, net —   10,728 
Due to participants 19,338   52,389 
Accounts payable, accrued expenses and other liabilities 35,331   42,962 
Total liabilities 3,107,888   2,347,249 
Shareholders' Equity:   
Series B Preferred stock (par value $0.02 per share; 54 authorized, 50 issued and outstanding) 48,181   48,181 
Common stock (par value $0.02 per share; authorized 199,980 shares, 28,892 and 28,658 issued and outstanding, respectively) 579   573 
Retained earnings 114,039   94,990 
Additional paid-in capital 255,327   253,830 
Accumulated other comprehensive loss, net of income taxes (2)  (4)
Total shareholders' equity 418,124   397,570 
Total liabilities and shareholders' equity$3,526,012  $2,744,819 
        


 
NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, except for Per Share Data)
      
 Three Months Ended
 September 30, 2026 June 30, 2026 September 30, 2025
 (unaudited) (unaudited) (unaudited)
Interest income     
Debt securities available-for-sale$172  $217  $200 
Loans and fees on loans 48,467   40,335   36,376 
Other interest earning assets 4,717   5,742   2,518 
Total interest income 53,356   46,294   39,094 
Interest expense     
Deposits 22,317   18,599   10,879 
Notes and securitizations 8,715   8,846   10,710 
Bank and FHLB borrowings 3,432   3,885   2,956 
Total interest expense 34,464   31,330   24,545 
Net interest income 18,892   14,964   14,549 
Provision for credit losses 15,393   12,114   7,712 
Net interest income after provision for credit losses 3,499   2,850   6,837 
Noninterest income     
Dividend income 1,005   485   425 
Net loss on loan servicing assets (1,342)  (5,249)  (4,493)
Servicing income 5,285   5,003   6,076 
Net gains on sales of loans 32   11,226   9,563 
Net gain (loss) on residuals in securitizations 1,500   2,006   (1,450)
Net gain on loans under the fair value option 19,986   20,654   29,250 
Electronic payment processing income 10,180   10,852   11,053 
Other noninterest income 16,247   15,140   9,964 
Total noninterest income 52,893   60,117   60,388 
Noninterest expense     
Salaries and employee benefits expense 21,224   23,234   19,973 
Electronic payment processing expense 4,407   4,719   4,429 
Professional services expense 3,935   3,181   3,793 
Other loan origination and maintenance expense 5,536   4,909   6,764 
Technology expense 2,961   2,921   3,092 
Other general and administrative costs 4,109   4,853   3,929 
Total noninterest expense 42,172   43,817   42,159 
Net income before taxes 14,220   19,150   25,066 
Income tax expense 3,516   4,539   7,165 
Net income 10,704   14,611   17,901 
Dividends to preferred shareholders (1,063)  (1,063)  (472)
Net income available to common shareholders$9,641  $13,548  $17,429 
Earnings per Common Share:     
Basic$0.34  $0.48  $0.68 
Diluted$0.34  $0.47  $0.67 
            

Reconciliation of GAAP to Non-GAAP Financial Measures (unaudited)
The information provided below presents a reconciliation of each of our non-GAAP financial measures to the most directly comparable GAAP financial measure. Ratios for three month periods ended have been annualized based on calendar days.

  
NewtekOne, Inc.As of and for the three months ended
(dollars and number of shares in thousands)September 30, 2026 June 30, 2026 September 30, 2025
Return on Average Equity and Tangible Common Equity     
Numerator: Net Income (GAAP)$10,704  $14,611  $17,901 
Dividend on preferred equity (1,063)   (1,063)   (472) 
Numerator: Adjusted net income 9,641   13,548   17,429 
Average Total Shareholders' Equity1 415,748   409,033   339,077 
Return on Average Equity1 9.2%   13.3%   20.4% 
Deduct: Preferred Stock (GAAP) 48,181   48,181   35,802 
Average Common Shareholders' Equity1 367,567   360,852   303,275 
Return on Average Common Equity 10.2%   14.3%   21.0% 
Deduct: Average Goodwill and Intangibles1 14,510   14,544   14,653 
Denominator: Average Tangible Common Equity1$353,057  $346,308  $288,622 
Return on Average Tangible Common Equity1 10.8%   15.7%   24.0% 
      
Return on Average Assets     
Numerator: Net Income (GAAP)$10,704  $14,611  $17,901 
Denominator: Average Assets1 3,270,779   2,971,097   2,262,678 
Return on Average Assets1 1.30%   1.97%   3.14% 
      
Efficiency Ratio     
Numerator: Non-Interest Expense (GAAP)$42,172  $43,817  $42,159 
Net Interest Income (GAAP) 18,892   14,964   14,549 
Non-Interest Income (GAAP) 52,893   60,117   60,388 
Denominator: Total Income$71,785  $75,081  $74,937 
Efficiency Ratio1 58.7%   58.4%   56.3% 
      
Tangible Book Value Per Share     
Total Shareholders' Equity (GAAP)$418,124  $413,373  $386,707 
Deduct: Goodwill and Intangibles (GAAP) 14,493   14,526   14,633 
Numerator: Total Tangible Book Value1$403,631  $398,847  $372,074 
Denominator: Total Number of Shares Outstanding 28,892   28,899   28,876 
Tangible Book Value Per Share1$13.97  $13.80  $12.89 
      
Tangible Book Value Per Common Share     
Total Tangible Book Value1$403,631  $398,847  $372,074 
Deduct: Preferred Stock (GAAP) 48,181   48,181   48,181 
Numerator: Tangible Common Book Value1$355,450  $350,666  $323,893 
Denominator: Total Number of Shares Outstanding 28,892   28,899   28,876 
Tangible Book Value Per Common Share1$12.30  $12.13  $11.22 
      
1Non-GAAP financial measure