BOCA RATON, Fla., Oct. 29, 2025 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (the "Company") (NASDAQ:NEWT) reports its financial and operating results for the three and nine month periods ended September 30, 2025.

Financial Highlights for the three and nine months ended September 30, 2025:

For the three months ended September 30, 2025 ("3Q25"), basic and diluted earnings per share ("EPS") were $0.68 and $0.67, respectively, vs. $0.45 and $0.45, respectively, for the three months ended September 30, 2024 ("3Q24"), reflecting Y/Y increases of 51% and 49%, respectively.
For the nine months ended September 30, 2025 ("YTD25"), basic and diluted EPS were $1.57 and $1.54, respectively, vs. $1.26 and $1.26, respectively, for the nine months ended September 30, 2024 ("YTD24"), reflecting Y/Y increases of 25% and 22%, respectively.
Book value per common share ended 3Q25 at $11.72, up Y/Y and Q/Q by 16.4% and 5.5%, respectively.
Tangible book value per common share¹ ended 3Q25 at $11.22, up Y/Y and Q/Q by 25.6% and 6.4%, respectively.
Total revenue, defined as the sum of net interest income and noninterest income, was $74.9 million for 3Q25, up 19.3% over $62.8 million for 3Q24. Total revenue was $211.5 million for YTD25, up 16.0% over $182.3 million for YTD24.
Net income before taxes for 3Q25 was approximately $25.1 million, up 47.0% Y/Y from $17.1 million for 3Q24. Net income before taxes for YTD25 was approximately $55.5 million, up 23.5% from $44.9 million for YTD24.
Pre-provision net revenue ("PPNR")¹^,² for 3Q25 was approximately $32.8 million, an increase of 36.7% from $24.0 million for 3Q24. PPNR for YTD25 was approximately $85.8 million, an increase of 39.1% from $61.7 million for YTD24.
The efficiency ratio¹ was 56.3% for 3Q25, an improvement from 61.8% for 3Q24.
Return on average assets ("ROAA")¹ was 3.06% for 3Q25.
Return on average equity ("ROAE")¹ was 20.4% for 3Q25.
Return on average tangible common equity ("ROTCE")¹ was 23.7% for 3Q25.
Pre-provision return on average assets ("PPROA")¹ was 5.75% for 3Q25.

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¹ Non-GAAP financial measure; see "Reconciliation of GAAP to Non-GAAP Financial Measures" below for a reconciliation and additional information on non-GAAP measures.

² PPNR is a non-GAAP metric calculated based on total net revenue less non-interest expense before adjusting for the provision for credit losses for the period. Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.

Selected Balance Sheet and Other Highlights for 3Q25

Raised $30 million of Common Equity Tier 1 (CET1) capital in a transaction with Patriot Financial Partners, L.P. ("Patriot") pursuant to which Patriot exchanged $20 million of our Series A Convertible Preferred Stock for our common shares and purchased an additional $10 million of our common shares for cash.
Increased Tier 1 capital by issuing $50 million of depositary shares, each representing a 1/40th interest in a share of the Company's 8.500% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B ("Series B Preferred"), with a liquidation preference of $1,000 per share (equivalent to $25.00 per Depositary Share).
Refinanced and upsized Newtek Merchant Solutions' borrowing facility with a new $95 million financing solution through Goldman Sachs Alternatives.
Originated $104 million of Alternative Loan Program ("ALP") loans compared to $66 million for 3Q24.
Originated $187 million of SBA 7(a) loans compared to 3Q24 originations of $243 million. In addition, the Company sold $69 million of guaranteed portions of SBA 7(a) loans in 3Q25.
Originated $28 million of SBA 504 loans. In addition, the Company sold $19 million of SBA 504 loans in 3Q25.
Originated $17.8 million and $19.3 million of CRE and C&I loans HFI.
Commercial deposits at Newtek Bank increased $52.0 million, or 17% Q/Q, while core consumer deposits grew $95.0 million, or 12% Q/Q; and wholesale deposits decreased $8 million Q/Q.
Insured deposits comprised 78% of deposits.

Post 3Q25 Highlights

On October 1, 2025, the Company paid a dividend on the Company's outstanding Series B Preferred in the amount of $9.44 per Preferred Share, or $0.2361 per depositary share, which is equivalent to 1/40th of the dividend on the Preferred Shares. This initial dividend payment on the Series B Preferred was pro-rated for the initial dividend period from the date of the issuance of the Series B Preferred on August 20, 2025.
On October 24, 2025, the Company paid a quarterly cash dividend of $0.19 per share on its outstanding common shares.

Commenting on quarterly results, Barry Sloane, CEO, President, and Chairman said, "We are pleased to report basic and diluted EPS of $0.68 and $0.67 for the third quarter of 2025, which compare favorably to basic and diluted EPS of $0.45 for the third quarter of 2024. Compared to balances as of September 30, 2024, loans and deposits increased approximately 58% and 81%, respectively, and we continue to post what we believe are above-average returns with 3Q25 ROAA and ROTCE of 3.06% and 23.7%. In addition, we continue to show the scalability of our operating model with a 3Q25 operating efficiency ratio of 56.3%, an improvement from 61.8% for the year ago quarter. Our business model is structured to capture incremental operating leverage, especially as we execute on plans to continue to grow lower cost business deposits."

Mr. Sloane continued, "On the capital front, we were tremendously successful in the third quarter, raising $30 million of CET1 capital and $80 million of Tier 1 capital. We also refinanced our borrowing facility at Newtek Merchant Solutions, our payments business, with a $95 million financing solution provided by Goldman Sachs. In effect, we are improving the complexion of our capital structure by layering in additional equity capital, with the goal of reducing unsecured debt at the holding company."

Mr. Sloane then went on to discuss NewtekOne's evolution, "NewtekOne's purpose and mission, which is to provide business and financial solutions to independent business owners in the United States, has not changed since the Company's inception in 1998. We enhanced our ability to deliver on that mission when we acquired what is now known as Newtek Bank roughly ten quarters ago in January of 2023, converting from a business development company to a financial holding company owning and operating a nationally chartered bank. With our technology enabled platform, we believe that NewtekOne looks different than the vast majority of our competitors. We are proud of having expanded our business by offering our business and financial solutions to our customers. What is most important to us is improving our customers' business prospects, enhancing their business opportunities, and helping them achieve their business goals."

Mr. Sloane added, "We believe we have created meaningful franchise value in transforming a single-branch sixty year old bank in Flushing, New York, with an antiquated operating model into a branchless, bankerless digital bank. Financial institutions of the future that make loans and provide depository solutions and money movement capabilities to independent business owners will need to do so with state-of-the-art technologies and artificial intelligence and without the use of costly bankers and branches. We believe that NewtekOne is well on its way and ahead of the industry in looking like a financial institution of the future. We have opened up more than 21,000 bank accounts digitally and serve our customers on demand and on camera with payroll, real-time payment, insurance brokerage, and lending solutions to help them grow their businesses. We have consistently ranked as one of the top three SBA lenders in the United States and currently service over 10,000 borrowers."

Mr. Sloane further added, "As we approach the end of 2025, I would like to highlight that our Alternative Lending Program, or ALP, that has completed three securitizations since the ALP was launched in 2019, is preparing a fourth securitization for the fourth quarter of 2025, which we expect to be our largest securitization to date. Investors have heard us discuss how ALP loans are extremely attractive to our client base, very profitable for our shareholders, and additive to our business strategy."

Mr. Sloane concluded, "For investors with a long-term view to owning a company with a winning strategy to help its client base, we believe that NewtekOne has demonstrated, in a relatively short period of time, the ability to raise deposits, make loans digitally, and to provide value-added payroll, insurance, and real-time payment solutions to its clients. We have spent the past two-plus decades developing our strategy and product offerings and believe financial institutions should be providing the helpful and necessary technologies like we offer to the independent business owner universe in the United States. According to the Small Business Administration, this market segment represents 43% of non-farm GDP and includes 36 million businesses. Later today, we look forward to sharing our presentation during our earnings conference call, which will be archived in the investor relations section of our website. We believe our future is extremely bright, and our go forward plan is to continue to provide attractive risk adjusted returns to shareholders."

Third Quarter 2025 Conference Call and Webcast

A conference call to discuss the third quarter 2025 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 29, 2025, at 4:30 p.m. ET.

Please note, to attend the conference call or webcast, participants should register online at NewtekOne, Inc. Third Quarter 2025 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 2025 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, 2025. 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, including the duration of the current government shutdown. 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, 2025			December 31, 2024
	(Unaudited)
ASSETS
Cash and due from banks	$	3,980		$	6,941
Restricted cash (amounts related to VIEs of $6.3 million and $6.3 million, respectively)		24,737			28,226
Interest bearing deposits in banks		188,214			346,207
Total cash and cash equivalents		216,931			381,374
Debt securities available-for-sale, at fair value		18,009			23,916
Loans held for sale, at fair value		757,001			372,286
Loans held for sale, at LCM		28,678			58,803
Loans held for investment, at fair value (amounts related to VIEs of $213.8 million and $257.2 million, respectively)		305,720			369,746
Loans held for investment, at amortized cost, net of deferred fees and costs		834,087			621,651
Allowance for credit losses		(45,166	)		(30,233	)
Loans held for investment, at amortized cost, net		788,921			591,418
Federal Home Loan Bank and Federal Reserve Bank stock		4,064			3,585
Settlement receivable		469			52,465
Residuals in securitizations, at fair value		76,701			—
Joint ventures and other non-control investments, at fair value (cost of $36,692 and $44,039), respectively		51,390			57,678
Goodwill and intangibles		14,633			14,752
Right of use assets		2,292			5,688
Servicing assets, at fair value		17,023			22,062
Servicing assets, at LCM		30,540			24,195
Other assets		86,727			60,636
Assets held for sale		—			21,308
Total assets	$	2,399,099		$	2,059,912

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing	$	21,771		$	11,142
Interest-bearing		1,156,193			961,910
Total deposits		1,177,964			973,052
Borrowings (including borrowings of VIEs of $140.6 million and $186.6 million, respectively)		748,549			708,041
Dividends payable		5,387			5,233
Lease liabilities		2,322			6,498
Deferred tax liabilities, net		5,343			2,244
Due to participants		35,047			21,532
Accounts payable, accrued expenses and other liabilities		37,780			40,806
Liabilities directly associated with assets held for sale		—			6,224
Total liabilities		2,012,392			1,763,630
Shareholders' Equity:	(Unaudited)
Series A Preferred stock (par value $0.00 and $0.02 per share; 0 and 20 authorized, 0 and 20 issued and outstanding, respectively)		—			19,738
Series B Preferred stock (par value $0.02 per share; 54 authorized, 50 issued and outstanding, respectively)		48,181			—
Common stock (par value $0.02 per share; authorized 199,980 shares, 28,876 and 26,291 issued and outstanding, respectively)		577			526
Retained earnings		81,981			57,773
Additional paid-in capital		255,963			218,266
Accumulated other comprehensive income (loss), net of income taxes		5			(21	)
Total shareholders' equity		386,707			296,282
Total liabilities and shareholders' equity	$	2,399,099		$	2,059,912

NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, except for Per Share Data)

	Three Months Ended
	September 30, 2025			June 30, 2025			September 30, 2024
	(unaudited)			(unaudited)			(unaudited)
Interest income
Debt securities available-for-sale	$	200		$	214		$	334
Loans and fees on loans		36,376			33,354			28,588
Other interest earning assets		2,518			2,950			2,349
Total interest income		39,094			36,518			31,271
Interest expense
Deposits		10,879			9,357			7,314
Notes and securitizations		10,710			10,908			11,482
Bank and FHLB borrowings		2,956			2,330			1,494
Total interest expense		24,545			22,595			20,290
Net interest income		14,549			13,923			10,981
Provision for credit losses		7,712			9,117			6,928
Net interest income after provision for credit losses		6,837			4,806			4,053
Noninterest income
Dividend income		425			600			374
Net loss on loan servicing assets		(4,493	)		(4,355	)		(1,786	)
Servicing income		6,076			6,054			4,958
Net gains on sales of loans		9,563			15,526			25,675
Net (loss) gain on residuals in securitizations		(1,450	)		31,465			—
Net gain (loss) on loans under the fair value option		29,250			(11,761	)		(4,085	)
Technology and IT support income		—			—			3,311
Electronic payment processing income		11,053			11,739			11,777
Other noninterest income		9,964			7,007			11,627
Total noninterest income		60,388			56,275			51,851
Noninterest expense
Salaries and employee benefits expense		19,973			23,135			19,149
Technology services expense		—			—			1,796
Electronic payment processing expense		4,429			4,428			4,438
Professional services expense		3,793			4,304			3,929
Other loan origination and maintenance expense		6,764			3,287			4,132
Depreciation and amortization		129			274			517
Loss on extinguishment of debt		179			—			—
Other general and administrative costs		6,892			6,881			4,886
Total noninterest expense		42,159			42,309			38,847
Net income before taxes		25,066			18,772			17,057
Income tax expense		7,165			5,069			5,123
Net income		17,901			13,703			11,934
Dividends to preferred shareholders		(472	)		(400	)		(400	)
Net income available to common shareholders	$	17,429		$	13,303		$	11,534
Earnings per Common Share:
Basic	$	0.68		$	0.53		$	0.45
Diluted	$	0.67		$	0.52		$	0.45

NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, except for Per Share Data)

	Nine Months Ended
	September 30, 2025			September 30, 2024
	(unaudited)			(unaudited)
Interest income
Debt securities available-for-sale	$	690		$	1,168
Loans and fees on loans		104,213			80,346
Other interest earning assets		8,599			6,177
Total interest income		113,502			87,691
Interest expense
Deposits		30,081			19,755
Notes and securitizations		32,592			33,427
Bank and FHLB borrowings		8,424			5,496
Total interest expense		71,097			58,678
Net interest income		42,405			29,013
Provision for credit losses		30,334			16,742
Net interest income after provision for credit losses		12,071			12,271
Noninterest income
Dividend income		2,711			1,128
Net loss on loan servicing assets		(12,500	)		(5,383	)
Servicing income		17,655			14,922
Net gains on sales of loans		38,050			68,531
Net (loss) gain on residuals in securitizations		30,015			—
Net gain (loss) on loans under the fair value option		35,566			(4,181	)
Technology and IT support income		—			14,255
Electronic payment processing income		33,401			35,409
Other noninterest income		24,163			28,557
Total noninterest income		169,061			153,238

Noninterest expense
Salaries and employee benefits expense		64,424			60,445
Technology services expense		—			8,624
Electronic payment processing expense		13,304			14,977
Professional services expense		11,532			11,237
Other loan origination and maintenance expense		14,468			9,391
Depreciation and amortization		549			1,570
Loss on extinguishment of debt		179			—
Other general and administrative costs		21,189			14,326
Total noninterest expense		125,645			120,570
Net income before taxes		55,487			44,939
Income tax expense		14,516			12,410
Net income		40,971			32,529
Dividends to preferred shareholders		(1,272	)		(1,200	)
Net income available to common shareholders	$	39,699		$	31,329
Earnings per Common Share:
Basic	$	1.57		$	1.26
Diluted	$	1.54		$	1.26

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, 2025			June 30, 2025			September 30, 2024
Return on Average Equity and Average Tangible Common Equity
Numerator: Net Income (GAAP)	$	17,429		$	13,703		$	11,934
Tax-adjusted amortization of intangibles		307			117			384
Dividend on preferred equity		(472	)		(400	)		(400	)
Numerator: Adjusted net income		17,264			13,420			11,918
Average Total Shareholders' Equity¹		339,116			299,308			258,326
Deduct: Preferred Stock (GAAP)		35,802			19,738			19,738
Average Common Shareholders' Equity¹		303,314			279,570			238,588
Return on Average Common Equity		20.4	%		18.4	%		18.4	%
Deduct: Average Goodwill and Intangibles¹		14,653			15,130			29,883
Denominator: Average Tangible Common Equity¹	$	288,661		$	264,440		$	208,705
Return on Average Tangible Common Equity¹		23.7	%		20.4	%		22.7	%

Return on Average Assets
Numerator: Net Income (GAAP)	$	17,429		$	13,703		$	11,934
Denominator: Average Assets¹		2,262,658			2,098,325			1,551,009
Return on Average Assets¹		3.06	%		2.62	%		3.06	%

Pre-Provision Net Revenue (PPNR)
Net Income before Taxes (GAAP)	$	25,066		$	18,772		$	17,057
Add: Provision for Credit Losses (GAAP)		7,712			9,117			6,928
Pre-Provision Net Revenue^1,2	$	32,778		$	27,889		$	23,985

Pre-Provision Return on Average Assets (PPROA)
Pre-Provision Net Revenue^1,2	$	32,778		$	27,889		$	23,985
Denominator: Average Assets¹		2,262,658			2,098,325			1,551,009
Pre-Provision Return on Average Assets¹		5.75	%		5.33	%		6.15	%

NewtekOne, Inc.	As of and for the three months ended
(dollars and number of shares in thousands)	September 30, 2025			June 30, 2025			September 30, 2024
Efficiency Ratio
Numerator: Non-Interest Expense (GAAP)	$	42,159		$	42,309		$	38,847
Net Interest Income (GAAP)		14,549			13,923			10,981
Non-Interest Income (GAAP)		60,388			56,275			51,851
Denominator: Total Income	$	74,937		$	70,198		$	62,832
Efficiency Ratio¹		56.3	%		60.3	%		61.8	%

Tangible Book Value Per Share
Total Shareholders' Equity (GAAP)	$	386,707		$	312,180		$	281,785
Deduct: Goodwill and Intangibles (GAAP)		14,633			14,672			29,624
Numerator: Total Tangible Book Value¹	$	372,074		$	297,508		$	252,161
Denominator: Total Number of Shares Outstanding		28,876			26,317			26,018
Tangible Book Value Per Share¹	$	12.89		$	11.30		$	9.69

Tangible Book Value Per Common Share
Total Tangible Book Value¹	$	372,074		$	297,508		$	252,161
Deduct: Preferred Stock (GAAP)		48,181			19,738			19,738
Numerator: Tangible Book Value Per Common Share¹	$	323,893		$	277,770		$	232,423
Denominator: Total Number of Shares Outstanding		28,876			26,317			26,018
Tangible Book Value Per Common Share¹	$	11.22		$	10.55		$	8.93

¹Non-GAAP financial measure.
²PPNR is a non-GAAP metric calculated based on total net revenue less non-interest expense before adjusting for the provision for credit losses for the period. Management believes that this financial metric is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.

NewtekOne, Inc. Reports 3Q25 and Year-to-Date 2025 Basic and Diluted EPS of $0.68 and $0.67 and $1.57 and $1.54