NewtekOne, Inc. Reports Full Year 2024 Earnings of $1.97 per Basic and $1.96 per Diluted Common Share

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NewtekOne's Q4 and full-year 2024 results showcase the successful transformation from a Business Development Company to a bank holding company, with Q4 EPS surging 62.8% year-over-year to $0.70 and full-year EPS reaching $1.97 (compared to an adjusted $1.30 in 2023 excluding one-time tax benefits).

The company's deposit-gathering strategy has been remarkably effective, with deposits growing over 600% from acquisition to $1.04 billion by year-end 2024, with 80.3% insured. This rapid balance sheet transformation has maintained exceptional profitability metrics, with full-year ROTCE of 24.1% and ROAA of 3.2% - significantly outperforming traditional banking peers.

NewtekOne's credit quality appears to be stabilizing, with non-accruals peaking in Q2 2024 and declining nearly 50% in Q4. This supports management's assertion that their higher-risk, higher-return lending model incorporates appropriate loss reserves to absorb expected charge-offs while maintaining superior returns.

The company is executing a strategic loan portfolio diversification, with plans to accelerate growth in conforming CRE, C&I, and SBA 504 loans relative to their traditional SBA 7(a) business. Meanwhile, their Alternative Loan Program showed impressive 224.9% year-over-year growth, with $500 million in new originations forecast for 2025 and a third securitization anticipated in H1 2025.

NewtekOne's technology-driven approach through the Newtek Advantage platform (recently enhanced with QuickBooks integration) is driving exceptional efficiency, with Newtek Bank's efficiency ratio at 43.6% compared to industry norms typically above 50%. This technological edge enables customer acquisition at lower costs than traditional branch-based models.

The raised 2025 EPS guidance of $2.10-$2.50 reflects management's confidence in sustaining growth while maintaining appropriate risk management, though investors should monitor capital ratios which have declined year-over-year amid the rapid expansion.

NewtekOne's 2024 results demonstrate the extraordinary success of their banking transformation, achieving financial metrics that significantly outpace traditional banking competitors. The full-year ROTCE of 24.1% and ROAA of 3.2% dwarf industry averages of 10-12% and 1.0-1.2% respectively, while Newtek Bank's standalone metrics are even more impressive at 48.8% ROTCE and 6.3% ROAA.

The company's deposit gathering strategy has been remarkably effective, growing from $142 million at acquisition to $1.04 billion in just two years (600%+ growth) while maintaining 80.3% insured deposits. This achievement is particularly notable given they've accomplished this without the expensive branch infrastructure that burdens traditional banks.

NewtekOne's technology-first approach through their Newtek Advantage platform (recently enhanced with QuickBooks integration) creates a significant competitive advantage in customer acquisition and operational efficiency. This drives their industry-leading efficiency ratios of 43.6% at Newtek Bank and 63.2% at the holding company level, allowing them to operate with substantially lower overhead than traditional banks.

The credit quality narrative shows promising trends, with non-accruals peaking in Q2 2024 and declining by nearly 50% in Q4. This suggests their risk management practices are effectively addressing credit deterioration, supporting management's assertion that their higher-risk, higher-reward lending model incorporates appropriate loss reserves.

Their loan diversification strategy is prudent, expanding beyond their SBA 7(a) expertise (up 15.2% YoY to $954.3 million) into Alternative Lending (up 224.9% YoY) while planning increased emphasis on conventional CRE, C&I and SBA 504 loans for 2025. This diversification should reduce concentration risk while leveraging their established underwriting expertise.

While capital ratios have declined year-over-year amid rapid growth, they remain above well-capitalized thresholds. The securitization strategy for Alternative Loans provides an important funding avenue beyond deposits, reducing balance sheet constraints on growth while maintaining earnings potential through servicing income.

02/26/2025 - 05:27 PM

Raises Full Year 2025 Earnings Forecast Range to $2.10 to $2.50 per Basic and Diluted Common Share

BOCA RATON, Fla., Feb. 26, 2025 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (Nasdaq: NEWT) reports its financial and operating results for the three and twelve months ended December 31, 2024.

NewtekOne Financial Highlights for the Three Months Ended December 31, 2024

Net income was $18.3 million and earnings per share (“EPS”) was $0.70 per basic and $0.69 per diluted common share, for the three months ended December 31, 2024; a 55.6% increase, on a per share basis, compared to $11.9 million and $0.45 per basic and diluted common share for the three months ended September 30, 2024, and a 62.8% increase, on a per share basis, compared to $10.8 million and $0.43 per basic and diluted common share for the three months ended December 31, 2023.
Net interest income was $11.3 million for the three months ended December 31, 2024; an increase of 2.7% over $11.0 million for the three months ended September 30, 2024, and an increase of 36.1% over $8.3 million for the three months ended December 31, 2023.
Total assets were $2.1 billion at December 31 2024; an increase of 50.0% from $1.4 billion at December 31, 2023.
Loans held for investment were $991.4 million at December 31, 2024; an increase of 23.0% over $806.1 million at December 31, 2023.
Total borrowings were $708.0 million at December 31, 2024; an increase of 9.9% from $644.1 million at December 31, 2023.
Net interest margin² was 2.80% for the three months ended December 31, 2024; a decrease of 9.1% compared to 3.08% for the three months ended September 30, 2024, and an increase of 1.4% over 2.76% for the three months ended December 31, 2023.
Return on Tangible Common Equity (“ROTCE”)¹ of 31.8% for the three months ended December 31, 2024; an increase of 49.3% over 21.3% for the three months ended September 30, 2024, and an increase of 20.5% over 26.4% for the three months ended December 31, 2023.
Return on Average Assets (“ROAA”)^1,2 of 4.1% for the three months ended December 31, 2024; an increase of 41.4% over 2.9% for the three months ended September 30, 2024, and an increase of 28.1% over 3.2% for the three months ended December 31, 2023.
Efficiency ratio² of 55.9% for the three months ended December 31, 2024; an improvement of 9.5% compared to 61.8% for the three months ended September 30, 2024, and an improvement of 16.1% compared to 66.6% for the three months ended December 31, 2023.
Total risk-based capital ratio² was 19.7% at December 31, 2024; an increase of 3.1% over 19.1% at December 31, 2023.
Tier-1 leverage ratio² was 13.3% at December 31, 2024; a decrease of 2.2% compared to 13.6% at December 31, 2023.
Alternative Loan Program ("ALP") loan closings were $91.4 million for the three months ended December 31, 2024; an increase of 199.0% over $30.5 million ALP loan closings for the three months ended December 31, 2023.
The Newtek Payments segment, which includes Newtek Merchant Solutions ("NMS") and Mobil Money, had pretax income of $3.5 million for the three months ended December 31, 2024; a 2.9% increase over the three months ended December 31, 2023.

Post Fourth Quarter 2024 Highlights

The Company raises its 2025 annual EPS forecast range to $2.10 to $2.50 per basic and diluted common share, from its previous full year 2025 EPS forecast range of $2.00 to $2.25 per basic and diluted common share.
On January 2, 2025, the Company closed on the sale of its wholly owned subsidiary Newtek Technology Solutions, Inc. ("NTS") to Intelligent Protection Management Corp. (Nasdaq: IPM).
On January 13, 2025, the Company paid a quarterly cash dividend of $0.19 per share on its outstanding common shares.
On February 18, 2025, the Company announced that the Newtek Advantage^® now integrates with Intuit QuickBooks^®, providing independent business owners with a real-time snapshot into their finances directly through the Newtek Advantage connecting real-time accounting data with real-time banking data.

NewtekOne Financial Highlights for the Twelve Months Ended December 31, 2024

Net income was $50.9 million and EPS was $1.97 per basic and $1.96 per diluted common share for the twelve months ended December 31, 2024, compared to $47.3 million and $1.89 per basic and $1.88 per diluted common share for the twelve months ended December 31, 2023. Excluding the positive impact of an income tax benefit of $14.2 million, or $0.59 per basic and $0.58 per diluted share in 2023, EPS for the twelve months ended December 31, 2023, would have been $1.30 per basic and diluted share.¹
Net interest income was $40.3 million for the twelve months ended December 30, 2024; an increase of 51.5% over $26.6 million for the twelve months ended December 31, 2023.
Net interest margin² was 2.87% for the twelve months ended December 31, 2024; an increase of 21.1% over 2.37% for the twelve months ended December 31, 2023.
ROTCE¹ of 24.1% for the twelve months ended December 31, 2024; a decrease of 13.9% compared to 28.0% for the twelve months ended December 31, 2023. ROTCE for the twelve months ended December 31, 2023, was positively impacted by the income tax benefit in the first quarter of 2023.
ROAA^1,2 of 3.2% for the twelve months ended December 31, 2024; a decrease of 11.1% compared to 3.6% for the twelve months ended December 31, 2023. ROAA for the twelve months ended December 31, 2023, was positively impacted by the income tax benefit in the first quarter of 2023.
Efficiency ratio² of 63.2% for the twelve months ended December 31, 2024; an improvement of 12.1% compared to 71.9% for the twelve months ended December 31, 2023.
ALP loan closings were $269.6 million for the twelve months ended December 31, 2024; an increase of 224.9% over $83.0 million of ALP loan closings for the twelve months ended December 31, 2023.
The Newtek Payments segment, which includes NMS and Mobil Money, had pretax income of $16.2 million for the twelve months ended December 31, 2024; a 33.1% increase over the twelve months ended December 31, 2023.
On September 16, 2024, the Company completed a registered public offering of $75.0 million aggregate principal amount of its 8.625% Fixed Rate Senior Notes due 2029 (Nasdaq: NEWTH), which were rated BBB+ by Egan-Jones Ratings Company with a positive outlook.
On July 23, 2024, NewtekOne's joint venture, Newtek-TSO II Conventional Credit Partners, LP, closed a $154.3 million alternative business loan backed securitization rated by Morningstar DBRS.

Newtek Bank, N.A. Financial Highlights

Total deposits³ were $1.04 billion at December 31, 2024; an increase of 39.5% over $745.7 million at September 30, 2024 and an increase of 100.3% over $519.1 million in deposits at December 31, 2023.
Insured deposits represented approximately 80.3% of total deposits at December 31, 2024.
Net interest margin was 4.84% for the twelve months ended December 31, 2024; an increase of 33.3% over 3.63% for the twelve months ended December 31, 2023.
ROTCE¹ of 48.8% for the twelve months ended December 31, 2024; an increase of 36.3% compared to 35.8% for the twelve months ended December 31, 2023.
ROAA¹ of 6.3% for the twelve months ended December 31, 2024; an increase of 10.5% compared to 5.7% for the twelve months ended December 31, 2023.
Efficiency ratio¹ of 43.6% for the twelve months ended December 31, 2024; an improvement of 12.6% from 49.9% for the twelve months ended December 31, 2023.
Total risk-based capital ratio was 15.4% at December 31, 2024; a decrease of 32.5% from 22.8% at December 31, 2023.
Tier-1 leverage ratio was 11.9% at December 31, 2024; a decrease of 28.3% from 16.6% at December 31, 2023.

Lending Highlights for the Twelve Months Ended December 31, 2024

SBA 7(a) loan closings of $954.3 million for the twelve months ended December 31, 2024; an increase of 15.2% over $828.1 million of SBA 7(a) loan closings for the twelve months ended December 31, 2023, surpassing the 2024 forecast of $935 million in total SBA 7(a) loan closings.
The Company forecasts $1.0 billion in total SBA 7(a) loan closings for 2025, which would represent a 6.0% increase over 2024.
SBA 504 loan closings of $129.8 million for the twelve months ended December 31, 2024; a decrease of 9.2% from $142.9 million SBA 504 loans closed for the twelve months ended December 31, 2023.
Newtek Bank and the Company’s non-bank lending subsidiaries closed $1.5 billion of loans across all loan products for the twelve months ended December 31, 2024; a 33.1% increase over $1.1 billion of loans closed for the same period in 2023.

Barry Sloane, CEO, President and Chairman said, “Having completed two full years since our January 6, 2023 acquisition of Newtek Bank (formerly known as the National Bank of New York City) and transitioning from a Business Development Company to a financial holding company owning a nationally chartered bank, we could not be more pleased with our ability to achieve our key metrics and milestones. We are a technology-based organization that is innovative and blanketed in a bank holding company wrapper. Since the acquisition, we have faced and successfully overcome many hurdles, including: demonstrating that we can raise deposits; transitioning loan originations and growth into Newtek Bank; and successfully operating as a financial holding company. For example, deposits on December 31, 2022, when we acquired Newtek Bank, were $142 million, and we have grown Newtek Bank's deposits³ by more than 600% to $1.04 billion on December 31, 2024, representing phenomenal growth in just two years. Additionally, Newtek Bank's loan portfolio grew by more than 360% from $167 million on December 31, 2022, to $774 million on December 31, 2024. During this two-year period, our business plan and model remained centered on our strategy of deposit growth, loan growth, and the development of the Newtek Advantage^®. As an example of this development, we announced last week that the Newtek Advantage now integrates with Intuit QuickBooks^®, providing independent business owners with a real-time snapshot into their finances. Specifically, this integration allows business owners using the Newtek Advantage and QuickBooks to access and display essential financial data from QuickBooks, including revenue, gross profits, net profits, account balances, invoices (with aging), and bills. This financial data is viewable in real time, with filtering options by day, month, or year, enabling customers to stay informed and make timely decisions with confidence. This feature complements the existing components of the Newtek Advantage, which includes real-time credit card payment tracking for batches and settlements, access to Newtek Bank, Newtek payroll services, free unlimited document storage, and free website analytics. Together, these tools provide a comprehensive 360-degree financial solution that gives independent business owners unparalleled control and visibility into their operations. Furthermore, our management team has done an excellent job of growing Newtek Bank’s assets, liabilities, and profits while maintaining what we believe are appropriate levels of capital and loan loss reserves, and achieving strong profitability. We believe that as we strive to continue to achieve our performance metrics and demonstrate our ability to earn outsized returns on equity and assets, market opportunities will continue to come our way. For the full year 2024, NewtekOne's ROTCE, and ROAA were 24.1% and 3.2%, respectively, which we believe are leading metrics in the bank and bank holding company space. Achieving these results while simultaneously being able to manage a portfolio of loans with a higher risk and reward profile, is something that we, as an organization, are familiar with, as this has been our business model for over two decades.”

Mr. Sloane added, “During our conference call tomorrow morning, we will focus on metrics such as pre-provision net revenue, as well as our percentage of non-interest income as a percentage of total income, which we believe can demonstrate how we are one of the top performers in the market regarding these metrics. We will also provide a more in-depth explanation regarding the loss default curves, both at the holding company and in Newtek Bank, which we believe are unique to our SBA 7(a) portfolio. This data will illustrate that we have an appropriate amount of loss reserves in our provisions, and that our returns can be less sensitive to credit deterioration compared to the banks and bank holding companies in our space. Slide 12 in our earnings conference call presentation will demonstrate the net increase in non accruals before charge offs peaked in the second quarter of 2024 and the subsequent decline of almost 50% in the fourth quarter of 2024. It is also important to highlight that we made progress in the fourth quarter of 2024 to diversify our Newtek Bank loan portfolio with lower margin, less risky, conforming, commercial, and industrial business loans as well as current vintage multi-tenanted commercial real estate loans. We believe we can continue to diversify the loan portfolio at Newtek Bank and can do this going forward without sacrificing our ability to generate what we view as industry leading ROTCE and ROAA. We will also discuss how we intend to grow Newtek Bank's conforming CRE and C&I loans, and SBA 504 loans at a faster rate than our SBA 7(a) loans in 2025. NewtekOne's full year 2025 EPS forecast incorporates an expectation of generating $500 million of new originations in the ALP loan portfolio, another important and growing segment of our business model. We anticipate our third ALP securitization will occur during the first half of 2025.”

Mr. Sloane further commented, “We believe that an investor in NewtekOne should look beyond the typical bank and bank holding company narrow focus on credit, provisions for credit losses, charge offs, and deposit rates of interest. Indeed, for over two decades, we have chosen not to avoid credit risk, but rather to seek to effectively manage a portfolio of loans and the risk associated with them and earn outsized returns. We believe we have demonstrated over the two years of owning Newtek Bank that our higher levels of provisions and charge offs are in our business plan and are included in our 2025 expectations, and further, should be measured against the high rewards we believe we can achieve as a result of having developed an expertise in the area of providing financing to independent business owners. After two full years of operations and financial results, including metrics such as our credit loss reserves, charge offs, well-capitalized balance sheet, and returns on equity and assets, we continue to believe in our ability to generate profits. We believe that our business model, with higher margins and lower operating expenses, has the ability to generate an attractive risk and reward scenario for all of our stakeholders with the capability to continue to grow our earnings on a go-forward basis."

Mr. Sloane concluded, “During our conference call tomorrow, we look forward to further elaborating on our unique and attractive business model, which we believe can address the bank holding company and bank industry issues of high-quality asset originations with razor-thin margins, as well as expensive infrastructure to acquire customers, using traditional bankers, branches, brokers, and business development officers. Newtek Bank is a true technology-enabled bank. During our two-decade history of using our patented NewTracker^® system and alliance partner model, through which we receive an average of 600 to 900 unique business referrals daily, we have been able to operate below industry-level efficiency ratios of 43.6% for Newtek Bank, and 63.2% for NewtekOne in 2024. Moreover, the industry’s business model is predicated on raising deposits at 2% to 3% below the risk-free treasury rate without offering depositors anything special for the inexpensive liabilities, or non-interest-bearing accounts, especially given today's market where deposits can be moved with the click of a mouse or the finger movement on a smartphone. We believe our business model can overcome obstacles in a compliant and frictionless manner that is highly attractive to our independent business owner client base due to, among other things, the Newtek Advantage. The Newtek Advantage can give independent business owner clientele true value by offering things like free document storage, free updated web tracking, analytics, payment processing in the business portal, data in the business portal, ability to make payroll in the business portal, integration with QuickBooks, and other benefits which can enable us to acquire and grow our business deposit clientele, particularly with the integration of payment processing and payroll with our Bank's checking accounts. We are pleased we were able to grow our business accounts significantly in 2024 and anticipate further growth in 2025 due to, among other things, the capabilities of the Newtek Advantage. We are raising our full year 2025 EPS forecast range to $2.10 to $2.50 per basic and diluted common share, from our previous full year 2025 EPS forecast range of $2.00 to $2.25 per basic and diluted common share, which we believe represents attractive, measurable growth over our full year 2024 EPS of $1.97 per basic and $1.96 per diluted common share for the twelve months ended December 31, 2024. In addition, our objective is to maintain the current dividend payout. Our current dividend yield has been tracking between 5% and 6%, which we believe represents an attractive opportunity for a company that is growing its earnings and has a unique and, in many metrics, industry-leading performance model.”

Fourth Quarter and Full Year 2024 Conference Call and Webcast

A conference call to discuss the fourth quarter and full year 2024 financial and operating results will be hosted by Barry Sloane, Chief Executive Officer, President and Chairman and M. Scott Price, Chief Financial Officer, tomorrow, Thursday, February 27, 2025, 8:30 a.m. ET.

Please note, to attend the conference call or webcast, participants should register online at NewtekOne, Inc. Fourth Quarter and Full Year 2024 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. Fourth Quarter and Full Year 2024 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-K for the year ended December 31, 2024. 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. In addition, earnings per share guidance reflects risks, uncertainties and assumptions with respect to facts and circumstances that are beyond our control, in particular concerning interest rates, monetary policy and prevailing economic conditions during the relevant periods, any of which may differ significantly from our assumptions about the applicable period, causing our actual operating results, including our earnings per share, to differ materially from the stated guidance. 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: Jayne Cavuoto
Telephone: (212) 273-8179 / jcavuoto@newtekone.com

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

	December 31, 2024			December 31, 2023
ASSETS	(unaudited)
Cash and due from banks	$	6,941		$	15,398
Restricted cash		28,226			30,919
Interest bearing deposits in banks		346,207			137,689
Total cash and cash equivalents		381,374			184,006
Debt securities available-for-sale, at fair value		23,916			32,171
Loans held for sale, at fair value		372,286			118,867
Loans held for sale, at LCM		58,803			56,607
Loans held for investment, at fair value		369,746			469,801
Loans held for investment, at amortized cost, net of deferred fees and costs		621,651			336,305
Allowance for credit losses		(30,233	)		(12,574	)
Loans held for investment, at amortized cost, net		591,418			323,731
Federal Home Loan Bank and Federal Reserve Bank stock		3,585			3,635
Settlement receivable		52,465			62,230
Joint ventures and non-control investments, at fair value (cost of $44,039 and $38,660), respectively		57,678			41,587
Goodwill and intangibles		14,752			30,120
Right of use assets		5,688			5,701
Deferred tax asset, net		—			5,230
Servicing assets		46,257			39,725
Other assets		60,636			56,102
Assets held for sale		21,308			—
Total assets	$	2,059,912		$	1,429,513

LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing	$	11,142		$	10,053
Interest-bearing		961,910			453,452
Total deposits		973,052			463,505
Borrowings		708,041			644,122
Dividends payable		5,233			4,792
Lease liabilities		6,498			6,952
Deferred tax liabilities, net		2,244			—
Due to participants		21,532			23,796
Accounts payable, accrued expenses and other liabilities		40,806			37,300
Liabilities directly associated with assets held for sale		6,224			—
Total liabilities		1,763,630			1,180,467

Shareholders' Equity:
Preferred stock (par value $0.02 per share; authorized 20 shares, 20 shares issued and outstanding)		19,738			19,738
Common stock (par value $0.02 per share; authorized 199,980 shares, 26,291 and 24,680 issued and outstanding, respectively)		526			492
Additional paid-in capital		218,266			200,913
Retained earnings		57,773			28,051
Accumulated other comprehensive income (loss), net of income taxes		(21	)		(148	)
Total shareholders' equity		296,282			249,046
Total liabilities and shareholders' equity	$	2,059,912		$	1,429,513

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

	Three Months Ended December 31,									Year Ended December 31,
		2024			2023			2022			2024			2023			2022
	Financial Holding Company			Financial Holding Company			Investment Company			Financial Holding Company			Financial Holding Company			Investment Company
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Interest income
Debt securities available-for-sale	$	314		$	435		$	—		$	1,482		$	1,518		$	—
Loans and fees on loans		30,546			23,660			11,781			110,892			84,001			35,696
Interest from affiliates		—			—			834			—			—			2,921
Other interest earning assets		2,867			2,274			—			9,044			8,854			—
Total interest income		33,727			26,369			12,615			121,418			94,373			38,617
Interest expense
Deposits		8,935			5,111			—			28,690			15,849			—
Notes and securitizations		12,027			11,411			7,348			45,454			40,217			21,780
Bank and FHLB borrowings		1,473			1,546			1,303			6,969			11,673			3,998
Notes payable related party		—			—			262			—			—			547
Total interest expense		22,435			18,068			8,913			81,113			67,739			26,325
Net interest income		11,292			8,301			3,702			40,305			26,634			12,292
Provision for credit losses		9,474			4,365			—			26,216			11,704			—
Net interest income after provision for credit losses		1,818			3,936			3,702			14,089			14,930			12,292
Noninterest income
Dividend income		391			360			4,606			1,519			1,757			24,657
Net gain (loss) on loan servicing assets		(7,282	)		(1,983	)		(6,131	)		(12,665	)		8,970			2,259
Servicing income		5,165			4,985			3,767			20,087			18,289			13,698
Net gains on sales of loans		28,652			17,252			6,948			97,183			38,215			44,547
Net gain (loss) on loans under the fair value option		9,381			5,420			(14,089	)		5,200			18,008			(26,504	)
Technology and IT support income		5,388			6,460			—			19,643			24,916			—
Electronic payment processing income		10,640			10,659			—			46,049			42,855			—
Other noninterest income		11,739			5,954			24,840			40,296			23,762			34,221
Total noninterest income		64,074			49,107			19,941			217,312			176,772			92,878
Noninterest expense
Salaries and employee benefits expense		17,486			14,535			5,806			77,931			65,708			20,186
Technology services expense		3,637			4,265			—			12,261			14,272			—
Electronic payment processing expense		4,901			4,168			—			19,878			18,327			—
Professional services expense		4,576			3,311			2,812			15,813			13,077			7,134
Other loan origination and maintenance expense		4,379			2,503			8,846			13,770			9,433			30,746
Depreciation and amortization		214			613			58			1,784			2,884			239
Loss on extinguishment of debt		—			271			—			—			271			417
Other general and administrative costs		6,946			8,543			2,054			21,272			22,357			7,673
Total noninterest expense		42,139			38,209			19,576			162,709			146,329			66,395
Net income before taxes		23,753			14,834			4,067			68,692			45,373			38,775
Income tax expense (benefit)		5,429			3,985			6,289			17,839			(1,956	)		6,464
Net income		18,324			10,849			(2,222	)		50,853			47,329			32,311
Dividends to preferred shareholders		(400	)		(405	)		—			(1,600	)		(1,454	)		—
Net income available to common shareholders	$	17,924		$	10,444		$	(2,222	)	$	49,253		$	45,875		$	32,311

Earnings per share:
Basic	$	0.70		$	0.43		$	(0.09	)	$	1.97		$	1.89		$	1.34
Diluted	$	0.69		$	0.43		$	(0.09	)	$	1.96		$	1.88		$	1.34

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.

Reconciliation of Newtek Bank and NewtekOne Inc. Non-GAAP Measures:

Newtek Bank, NA	As of and for the year ended December 31,
(in thousands)	2024	2023
Return on Average Tangible Common Equity
Net Income (GAAP)	$51,994	$28,125
Tax-adjusted amortization of intangibles	130	142
Numerator: Adjusted net income	52,124	28,267
Average Total Shareholders' Equity¹	107,896	81,049
Deduct: Average Goodwill and Intangibles¹	1,031	2,099
Denominator: Tangible Average Common Equity¹	$106,865	$78,950
Return on Average Tangible Common Equity¹	48.8%	35.8%

Return on Average Assets
Numerator: Net Income (GAAP)	$51,994	$28,125
Denominator: Average Assets¹	827,220	490,606
Return on Average Assets¹	6.3%	5.7%

Efficiency Ratio
Numerator: Non-Interest Expense (GAAP)	$70,803	$51,378
Net Interest Income (GAAP)	39,721	17,461
Non-Interest Income (GAAP)	122,904	85,579
Denominator: Total Income	$162,625	$103,040
Efficiency Ratio¹	43.6%	49.9%

Net Interest Margin
Net interest income (GAAP)	39,721	17,461
Average interest-earning assets	820,337	481,722
Net Interest Margin¹	4.84%	3.63%

NewtekOne, Inc.	As of and for the three months ended			As of and for the year ended December 31,
(dollars and number of shares in thousands)	December 31, 2024	September 30, 2024	December 31, 2023	2024	2023
Return on Average Tangible Common Equity
Numerator: Net Income (GAAP)	$18,324	$11,934	$10,849	$50,853	$47,329
Tax-adjusted amortization of intangibles	55	141	141	491	1,057
Numerator: Adjusted net income	18,379	12,075	10,990	51,344	48,386
Average Total Shareholders' Equity¹	279,853	274,888	218,387	262,805	224,052
Deduct: Preferred Stock (GAAP)	19,738	19,738	19,738	19,738	19,738
Average Common Shareholders' Equity¹	260,115	255,150	198,649	243,067	204,314
Deduct: Average Goodwill and Intangibles¹	29,939	29,729	31,250	29,902	31,706
Denominator: Average Tangible Common Equity¹	$230,176	$225,421	$167,399	$213,165	$172,608
Return on Average Tangible Common Equity¹	31.8%	21.3%	26.4%	24.1%	28.0%

Return on Average Assets
Numerator: Net Income (GAAP)	$18,324	$11,934	$10,849	$50,853	$47,329
Denominator: Average Assets¹	1,787,859	1,610,849	1,382,690	1,588,282	1,316,923
Return on Average Assets¹	4.1%	2.9%	3.2%	3.2%	3.6%

Efficiency Ratio
Numerator: Non-Interest Expense (GAAP)	$42,139	$38,847	$38,209	$162,709	$146,329
Net Interest Income (GAAP)	11,292	10,981	8,301	40,305	26,634
Non-Interest Income (GAAP)	64,074	51,851	49,107	217,312	176,772
Denominator: Total Income	$75,366	$62,832	$57,408	$257,617	$203,406
Efficiency Ratio¹	55.9%	61.8%	66.6%	63.2%	71.9%

Net Interest Margin
Net interest income	11,288	10,981	8,301	40,309	26,634
Average interest-earning assets	1,603,858	1,416,568	1,194,463	1,402,491	1,122,930
Net Interest Margin¹	2.80%	3.08%	2.76%	2.87%	2.37%

Reconciliation of NewtekOne, Inc. Tangible Book Value:

	As of December 31,
NewtekOne, Inc.	2024	2023
Tangible Book Value Per Share
Total Shareholders' Equity (GAAP)	$296,282	$281,785
Deduct: Goodwill and Intangibles (GAAP)	29,581	30,120
Numerator: Total Tangible Book Value¹	$266,701	$251,665
Denominator: Total Number of Shares Outstanding	26,291	26,018
Tangible Book Value Per Share¹	$10.14	$9.67

Tangible Book Value Per Common Share
Total Tangible Book Value¹	$266,701	$251,665
Deduct: Preferred Stock (GAAP)	19,738	19,738
Numerator: Tangible Book Value Per Common Share¹	$246,963	$231,927
Denominator: Total Number of Shares Outstanding	26,291	26,018
Tangible Book Value Per Common Share¹	$9.39	$8.91
¹ Non-GAAP

Reconciliation of Core EPS to GAAP EPS:

	Year Ended December 31, 2024								Year Ended December 31, 2023
	GAAP EPS			Adjustments		Core EPS			GAAP EPS			Adjustments			Core EPS
	Based on Net Income			Discrete Tax Benefits on Reorg		Based on Adjusted Net Income			Based on Net Income			Discrete Tax Benefits on Reorg			Based on Adjusted Net Income

Net income before taxes	$	68,692		$	—	$	68,692		$	45,373		$	—		$	45,373
Income tax expense (benefit)		17,839			—		17,839			(1,956	)		14,244			12,288
Net income		50,853			—		50,853			47,329			(14,244	)		33,085
Preferred dividends		(1,600	)		—		(1,600	)		(1,454	)		—			(1,454	)
Net income available to common shareholders	$	49,253		$	—	$	49,253		$	45,875		$	(14,244	)	$	31,631

Basic:
Income available to common shareholders	$	49,253		$	—	$	49,253		$	45,875		$	(14,244	)	$	31,631
Weighted-average basic shares outstanding		24,945			—		24,945			24,263			—			24,263
Basic	$	1.97		$	—	$	1.97		$	1.89		$	0.59		$	1.30

Diluted:
Income available to common shareholders	$	49,253		$	—	$	49,253		$	45,875		$	(14,244	)	$	31,631
Total weighted-average diluted shares outstanding		25,186			—		25,186			24,348			—			24,348
Diluted	$	1.96		$	—	$	1.96		$	1.88		$	0.58		$	1.30

¹ Non-GAAP; reconciliations of non-GAAP financial measures to the most comparable GAAP measures are set forth on the last page of the financial information accompanying this press release.
²Assets under supervision, capital ratios, risk-weighted assets and supplementary leverage ratio are preliminary data and subject to change with the filing of our Form 10-K for the period ended December 31, 2024.
³ Total deposits as reported include $69.9 million, $96.3 million, and $55.6 million in deposits from affiliates held at Newtek Bank as of December 31, 2024, September 30, 2024, and December 31, 2023, respectively, which are eliminated through consolidation on NewtekOne's consolidated financial statements.

FAQ

What is NewtekOne's (NEWT) earnings forecast for 2025?

NewtekOne raised its 2025 EPS forecast range to $2.10-$2.50 per basic and diluted share, up from the previous forecast of $2.00-$2.25.

How much did NewtekOne's (NEWT) SBA 7(a) loan closings grow in 2024?

NEWT's SBA 7(a) loan closings reached $954.3 million in 2024, a 15.2% increase from $828.1 million in 2023.

What was NewtekOne's (NEWT) deposit growth in 2024?

Total deposits grew to $1.04 billion by December 31, 2024, representing a 100.3% increase from $519.1 million in December 2023.

What was NewtekOne's (NEWT) net income and EPS for full year 2024?

NewtekOne reported net income of $50.9 million and earnings per share of $1.97 basic and $1.96 diluted for 2024.

What percentage of NewtekOne's (NEWT) deposits were insured as of December 2024?

Approximately 80.3% of total deposits were insured as of December 31, 2024.

NewtekOne, Inc. Reports Full Year 2024 Earnings of $1.97 per Basic and $1.96 per Diluted Common Share

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NewtekOne, Inc. Reports Full Year 2024 Earnings of $1.97 per Basic and $1.96 per Diluted Common Share

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What is NewtekOne's (NEWT) earnings forecast for 2025?

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What percentage of NewtekOne's (NEWT) deposits were insured as of December 2024?

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