NewtekOne, Inc. Reports Third Quarter 2024 Earnings of $0.45 per Basic and Diluted Common Share
NewtekOne (NEWT) reported Q3 2024 earnings of $0.45 per share, up 4.7% from both Q2 2024 and Q3 2023. Net interest income reached $11.0 million, showing a 20.9% increase from Q2 2024. Total assets grew 21.4% to $1.7 billion, while loans held for investment increased 13.3% to $913.0 million. The company's Payments segment reported pretax income of $5.3 million, up 32.5% year-over-year. Newtek Bank saw deposits grow 43.7% to $745.7 million since December 2023. The company maintains its 2024 EPS guidance of $1.85-$2.05 and forecasts 2025 EPS of $2.00-$2.25.
NewtekOne (NEWT) ha riportato utili del terzo trimestre 2024 di $0,45 per azione, in aumento del 4,7% rispetto sia al secondo trimestre 2024 sia al terzo trimestre 2023. Il reddito netto da interessi ha raggiunto i $11,0 milioni, mostrando un incremento del 20,9% rispetto al secondo trimestre 2024. I beni totali sono aumentati del 21,4% a $1,7 miliardi, mentre i prestiti detenuti per investimento sono aumentati del 13,3% a $913,0 milioni. Il segmento Pagamenti dell'azienda ha riportato un reddito ante imposte di $5,3 milioni, in aumento del 32,5% rispetto all'anno precedente. Newtek Bank ha visto crescere i depositi del 43,7%, raggiungendo $745,7 milioni da dicembre 2023. L'azienda mantiene la sua guida EPS per il 2024 tra $1,85 e $2,05 e prevede un EPS per il 2025 tra $2,00 e $2,25.
NewtekOne (NEWT) reportó ganancias del tercer trimestre de 2024 de $0.45 por acción, un aumento del 4.7% tanto con respecto al segundo trimestre de 2024 como al tercer trimestre de 2023. Los ingresos netos por intereses alcanzaron $11.0 millones, mostrando un incremento del 20.9% con respecto al segundo trimestre de 2024. Los activos totales crecieron un 21.4% hasta $1.7 mil millones, mientras que los préstamos mantenidos para inversión aumentaron un 13.3% hasta $913.0 millones. El segmento de Pagos de la compañía reportó un ingreso antes de impuestos de $5.3 millones, un aumento del 32.5% interanual. Newtek Bank vio crecer los depósitos un 43.7% alcanzando $745.7 millones desde diciembre de 2023. La compañía mantiene su guía EPS para 2024 de $1.85 a $2.05 y pronostica un EPS de $2.00 a $2.25 para 2025.
NewtekOne (NEWT)는 2024년 3분기 주당 수익이 $0.45로, 2024년 2분기 및 2023년 3분기와 비교하여 4.7% 증가했다고 보고했습니다. 순이자 수익은 $11.0 백만에 도달하여 2024년 2분기 대비 20.9% 증가했습니다. 총 자산은 21.4% 증가하여 $1.7억 달러에 이르렀고, 투자용 대출은 13.3% 증가하여 $913.0 백만 달러에 도달했습니다. 회사의 결제 부문은 세전 수익이 $5.3 백만 달러로, 전년 대비 32.5% 증가했습니다. Newtek Bank는 2023년 12월 이후로 예금이 43.7% 증가하여 $745.7 백만 달러에 도달했습니다. 회사는 2024년 EPS 가이던스를 $1.85-$2.05로 유지하며, 2025년 EPS를 $2.00-$2.25로 예상하고 있습니다.
NewtekOne (NEWT) a annoncé un bénéfice du troisième trimestre 2024 de 0,45 $ par action, en hausse de 4,7 % par rapport au deuxième trimestre 2024 et au troisième trimestre 2023. Les revenus nets d'intérêts ont atteint 11,0 millions de dollars, montrant une augmentation de 20,9 % par rapport au deuxième trimestre 2024. Les actifs totaux ont augmenté de 21,4 % pour atteindre 1,7 milliard de dollars, tandis que les prêts détenus pour investissement ont augmenté de 13,3 % pour atteindre 913,0 millions de dollars. Le segment des paiements de l'entreprise a rapporté un revenu avant impôt de 5,3 millions de dollars, en hausse de 32,5 % d'une année sur l'autre. La Newtek Bank a connu une augmentation de 43,7 % des dépôts, atteignant 745,7 millions de dollars depuis décembre 2023. L'entreprise maintient sa prévision de BPA pour 2024 entre 1,85 et 2,05 $ et prévoit un BPA pour 2025 entre 2,00 et 2,25 $.
NewtekOne (NEWT) berichtete im 3. Quartal 2024 einen Gewinn von $0,45 pro Aktie, was einem Anstieg von 4,7% sowohl im Vergleich zum 2. Quartal 2024 als auch zum 3. Quartal 2023 entspricht. Die Nettozinseinnahmen erreichten $11,0 Millionen und zeigen einen Anstieg von 20,9% im Vergleich zum 2. Quartal 2024. Die Gesamtvermögen stiegen um 21,4% auf $1,7 Milliarden, während die zur Investition gehaltenen Kredite um 13,3% auf $913,0 Millionen zunahmen. Der Zahlungsbereich des Unternehmens berichtete von einem steuerpflichtigen Einkommen von $5,3 Millionen, was einem Anstieg von 32,5% im Jahresvergleich entspricht. Newtek Bank verzeichnete einen Anstieg der Einlagen um 43,7% auf $745,7 Millionen seit Dezember 2023. Das Unternehmen hält an seiner EPS-Prognose für 2024 von $1,85-$2,05 fest und erwartet für 2025 einen EPS von $2,00-$2,25.
- Net income increased to $11.9 million with EPS growth of 4.7% YoY
- Net interest income grew 35.8% YoY to $11.0 million
- Total assets increased 21.4% to $1.7 billion
- Deposits grew 43.7% to $745.7 million YoY
- Payments segment pretax income increased 32.5% YoY
- Net interest margin improved to 3.08%, up 18.5% YoY
- Return on Tangible Common Equity decreased 14.5% YoY to 21.3%
- Return on Average Assets declined 3.3% YoY to 2.9%
- Bank's total risk-based capital ratio decreased 26.3% to 16.8%
- Tier-1 leverage ratio declined 19.9% to 13.3%
Insights
NewtekOne delivered a strong Q3 2024 with notable growth across key metrics. Net income reached
Key strengths include deposit growth of
The 2024 EPS guidance of
Growth in Deposits, Loans and Payments Segment Lead the Third Quarter 2024 Results
BOCA RATON, Fla., Nov. 06, 2024 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (Nasdaq: NEWT), reports its financial and operating results for the three and nine months ended September 30, 2024.
NewtekOne Financial Highlights for the Three Months Ended September 30, 2024
- Net income was
$11.9 million , and earnings per share (“EPS”) was$0.45 per basic and diluted common share, for the three months ended September 30, 2024; a4.7% increase, on a per share basis, compared to$10.9 million and$0.43 per basic and diluted common share for the three months ended June 30, 2024, and a4.7% increase, on a per share basis, compared to$10.9 million and$0.43 per basic and diluted common share for the three months ended September 30, 2023. - Net interest income was
$11.0 million for the three months ended September 30, 2024; an increase of20.9% over$9.1 million for the three months ended June 30, 2024, and an increase of35.8% over$8.1 million for the three months ended September 30, 2023. - Total assets were
$1.7 billion at September 30, 2024; an increase of21.4% from$1.4 billion at December 31, 2023. - Loans held for investment were
$913.0 million at September 30, 2024; an increase of13.3% over$806.1 million at December 31, 2023. - Total borrowings were
$655.8 million at September 30, 2024; an increase of1.8% from$644.1 million at December 31, 2023. - Net interest margin2 was
3.08% for the three months ended September 30, 2024; an increase of14.1% compared to2.70% for the three months ended June 30, 2024, and an increase of18.5% over2.60% for the three months ended September 30, 2023. - Return on Tangible Common Equity (“ROTCE”)1 of
21.3% for the three months ended September 30, 2024; a decrease of0.5% over21.4% for the three months ended June 30, 2024, and a decrease of14.5% over24.9% for the three months ended September 30, 2023. - Return on Average Assets (“ROAA”)1,2 of
2.9% for the three months ended September 30, 2024; an increase of3.6% over2.8% for the three months ended June 30, 2024, and a decrease of3.3% over3.0% for the three months ended September 30, 2023. - Efficiency ratio2 of
61.8% for the three months ended September 30, 2024; an improvement of6.8% compared to66.3% for the three months ended June 30, 2024, and an improvement of3.1% compared to63.8% for the three months ended September 30, 2023. - Total risk-based capital ratio2 was
20.5% at September 30, 2024; an increase of7.3% over19.1% at December 31, 2023. - Tier-1 leverage ratio2 was
13.9% at September 30, 2024; an increase of2.2% over13.6% at December 31, 2023. - The Newtek Payments segment, which includes Newtek Merchant Solutions ("NMS") and Mobil Money, had pretax income of
$5.3 million for the three months ended September 30, 2024; a32.5% increase over the three months ended September 30, 2023. - On September 16, 2024, the Company completed a registered public offering of
$75.0 million aggregate principal amount of its8.625% Fixed Rate Senior Notes due 2029 (the "2029 Notes") (Nasdaq: NEWTH). The 2029 Notes were rated BBB+ by Egan-Jones Ratings Company. - 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. - On August 11, 2024, the Company entered into a definitive agreement to sell its wholly owned subsidiary Newtek Technology Solutions, Inc. ("NTS") to Paltalk, Inc. (Nasdaq: PALT). As previously disclosed, in connection with the Company’s acquisition of Newtek Bank and transition to a financial holding company, the Company made a commitment to the Board of Governors of the Federal Reserve System to divest or terminate the activities of NTS by January 6, 2025. As such, the Company reported NTS as held for sale as of September 30, 2024.
Post Third Quarter 2024 Highlights
- The Company maintains its 2024 annual EPS forecast range of
$1.85 t o$2.05 per basic and diluted common share. - On October 21, 2024, the Company paid a quarterly cash dividend of
$0.19 per share on its outstanding common shares. - The Company forecasts 2025 annual EPS forecast in a range of
$2.00 t o$2.25 per basic and diluted share.
NewtekOne Financial Highlights for the Nine Months Ended September 30, 2024
- Net income was
$32.5 million and EPS was$1.26 per basic and diluted common share for the nine months ended September 30, 2024, compared to$36.5 million and$1.46 per basic and diluted common share for the nine months ended September 30, 2023. Net income for the nine months ended September 30, 2023, was positively impacted by an income tax benefit of$14.2 million , or$0.59 per basic and diluted share. Excluding this income tax benefit, EPS for the nine months ended September 30, 2023, would have been$0.87 per basic and diluted share.1 - Net interest income was
$29.0 million for the nine months ended September 30, 2024; an increase of58.5% over$18.3 million for the nine months ended September 30, 2023. - Net interest margin2 was
2.91% for the nine months ended September 30, 2024; an increase of30.5% over2.23% for the nine months ended September 30, 2023. - ROTCE1 of
21.2% for the nine months ended September 30, 2024; a decrease of26.9% compared to29.0% for the nine months ended September 30, 2023. ROTCE for the nine months ended September 30, 2023, was positively impacted by the income tax benefit in the first quarter of 2023. - ROAA1,2 of
2.9% for the nine months ended September 30, 2024; a decrease of23.7% compared to3.8% for the nine months ended September 30, 2023. ROAA for the nine months ended September 30, 2023, was positively impacted by the income tax benefit in the first quarter of 2023. - Efficiency ratio2 of
66.2% for the nine months ended September 30, 2024; an improvement of10.7% compared to74.1% for the nine months ended September 30, 2023. - The Newtek Payments segment, which includes NMS and Mobil Money, had pretax income of
$14.2 million for the nine months ended September 30, 2024; a43.4% increase over the nine months ended September 30, 2023.
Newtek Bank, N.A. Financial Highlights
- Total deposits3 were
$745.7 million at September 30, 2024; an increase of12.4% over$663.7 million at June 30, 2024 and an increase of43.7% over$519.1 million in deposits at December 31, 2023. - Insured deposits represented approximately
74.6% of total deposits at September 30, 2024. - Net interest margin was
5.29% for the three months ended September 30, 2024; an increase of9.5% over4.83% for the three months ended June 30, 2024, and an increase of49.9% over3.53% for the three months ended September 30, 2023. - ROTCE1 of
49.3% for the three months ended September 30, 2024; an increase of0.8% over48.9% for the three months ended June 30, 2024, and an increase of11.8% over44.1% for the three months ended September 30, 2023. - ROAA1 of
6.3% for the three months ended September 30, 2024; a decrease of1.6% over6.4% for the three months ended June 30, 2024, and an increase of5.0% over6.0% for the three months ended September 30, 2023. - Efficiency ratio1 of
39.4% for the three months ended September 30, 2024; an improvement of6.9% from42.3% for the three months ended June 30, 2024, and an improvement of2.2% from40.3% for the three months ended September 30, 2023. - Total risk-based capital ratio was
16.8% at September 30, 2024; a decrease of26.3% from22.8% at December 31, 2023. - Tier-1 leverage ratio was
13.3% at September 30, 2024; a decrease of19.9% from16.6% at December 31, 2023.
Lending Highlights
- SBA 7(a) loan closings of
$245.3 million for the three months ended September 30, 2024; an increase of12.5% over$218.0 million of SBA 7(a) loans closings for the three months ended September 30, 2023. - The Company forecasts
$935.0 million in total SBA 7(a) loan closings for 2024, which would represent a14.7% increase over 2023. - Newtek Bank closed
$38.4 million of SBA 504 loans for the three months ended September 30, 2024; an increase of117.0% over$17.7 million SBA 504 loans closed for the three months ended September 30, 2023. - Newtek Bank and the Company’s non-bank lending subsidiaries closed
$372.1 million of loans across all loan products for the three months ended September 30, 2024; a43.0% increase over$260.2 million of loans closed for the same period in 2023.
Barry Sloane, CEO, President and Chairman commented, “We are extremely pleased with our third quarter 2024 financial and operational performance across the areas of total deposit growth, business deposit growth, loan growth, and growth in the electronic payment processing segment, which enabled us to achieve earnings of
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.
2 Assets under supervision, capital ratios, risk-weighted assets and supplementary leverage ratio are preliminary data and subject to change with our filings with regulatory agencies and our Form 10-Q for the period ended September 30, 2024.
3 Total deposits as reported include deposits from affiliates held at Newtek Bank, which are eliminated through consolidation on NewtekOne's consolidated financial statements.
Mr. Sloane continued, “Pretax income in our Newtek Payments segment, which includes NMS and Mobil Money, for the three and nine months ended September 30, 2024, grew by
Mr. Sloane concluded, “We could not be more excited about our future, as our original three-year growth plan continues to fully develop without the need to modify. In our upcoming earnings conference call, we will demonstrate several important factors to the investor and analyst community that will highlight our capabilities in risk management, compliance, and diversification of business lines, further illustrating that our differentiated products and solutions, available to our client base, continue to track and demonstrate that doing business with NewtekOne is truly a business advantage.”
Third Quarter 2024 Conference Call and Webcast
A conference call to discuss the third quarter 2024 financial results will be hosted by Barry Sloane, President, Chairman and Chief Executive Officer and M. Scott Price, Chief Financial Officer, tomorrow, Thursday, November 7, 2024, 8:30 a.m. ET.
Please note, to attend the conference call or webcast, participants should register online at NewtekOne, Inc. Third Quarter 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. Third Quarter 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.
NewtekOne®, Your Business Solutions Company®, is a financial holding company, which along with Newtek Bank and NewtekOne's non-bank consolidated subsidiaries, 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 our independent business owner relationships 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, Technology Solutions (Cloud Computing, Data Backup, Storage and Retrieval, IT Consulting), eCommerce, Accounts Receivable Financing & Inventory Financing, Insurance Solutions, Web Services, and Payroll and Benefits Solutions.
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 quarterly period ended September 30, 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 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) | |||||||
September 30, 2024 | December 31, 2023 | ||||||
ASSETS | (Unaudited) | ||||||
Cash and due from banks | $ | 9,688 | $ | 15,398 | |||
Restricted cash | 27,929 | 30,919 | |||||
Interest bearing deposits in banks | 152,805 | 137,689 | |||||
Total cash and cash equivalents | 190,422 | 184,006 | |||||
Debt securities available-for-sale, at fair value | 23,790 | 32,171 | |||||
Loans held for sale, at fair value | 242,225 | 118,867 | |||||
Loans held for sale, at LCM | 60,203 | 56,607 | |||||
Loans held for investment, at fair value | 394,471 | 469,801 | |||||
Loans held for investment, at amortized cost, net of deferred fees and costs | 518,489 | 336,305 | |||||
Allowance for credit losses | (26,045 | ) | (12,574 | ) | |||
Loans held for investment, at amortized cost, net | 492,444 | 323,731 | |||||
Federal Home Loan Bank and Federal Reserve Bank stock | 3,608 | 3,635 | |||||
Settlement receivable | 62,117 | 62,230 | |||||
Joint ventures, at fair value (cost of | 55,750 | 40,859 | |||||
Non-control investments (cost of | 740 | 728 | |||||
Goodwill and intangibles | 14,794 | 30,120 | |||||
Right of use assets | 3,992 | 5,701 | |||||
Deferred tax asset, net | — | 5,230 | |||||
Servicing assets | 46,111 | 39,725 | |||||
Other assets | 62,984 | 56,102 | |||||
Assets classified as held for sale | 20,519 | — | |||||
Total assets | $ | 1,674,170 | $ | 1,429,513 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Liabilities: | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 11,040 | $ | 10,053 | |||
Interest-bearing | 638,418 | 453,452 | |||||
Total deposits | 649,458 | 463,505 | |||||
Borrowings | 655,834 | 644,122 | |||||
Dividends payable | 5,237 | 4,792 | |||||
Lease liabilities | 4,883 | 6,952 | |||||
Deferred tax liabilities, net | 4,700 | — | |||||
Due to participants | 22,217 | 23,796 | |||||
Accounts payable, accrued expenses and other liabilities | 45,092 | 37,300 | |||||
Liabilities directly associated with assets classified as held for sale | 4,964 | — | |||||
Total liabilities | 1,392,385 | 1,180,467 | |||||
Shareholders' Equity: | |||||||
Preferred stock (par value | 19,738 | 19,738 | |||||
Common stock (par value | 520 | 492 | |||||
Additional paid-in capital | 216,662 | 200,913 | |||||
Retained earnings | 44,834 | 28,051 | |||||
Accumulated other comprehensive loss, net of income taxes | 31 | (148 | ) | ||||
Total shareholders' equity | 281,785 | 249,046 | |||||
Total liabilities and shareholders' equity | $ | 1,674,170 | $ | 1,429,513 |
NEWTEKONE, INC. AND SUBSIDIARIES | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||||||
(In Thousands, except for Per Share Data) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 (as restated) | September 30, 2024 | September 30, 2023 (as restated) | |||||||||||||||
Interest income | |||||||||||||||||||
Debt securities available-for-sale | $ | 334 | $ | 374 | $ | 436 | $ | 1,168 | $ | 1,083 | |||||||||
Loans and fees on loans | 28,588 | 26,773 | 23,232 | 80,346 | 60,341 | ||||||||||||||
Other interest earning assets | 2,349 | 2,206 | 3,068 | 6,177 | 6,580 | ||||||||||||||
Total interest income | 31,271 | 29,353 | 26,736 | 87,691 | 68,004 | ||||||||||||||
Interest expense | |||||||||||||||||||
Deposits | 7,314 | 6,865 | 5,212 | 19,755 | 10,738 | ||||||||||||||
Notes and securitizations | 11,482 | 11,118 | 11,005 | 33,427 | 28,806 | ||||||||||||||
Bank and FHLB borrowings | 1,494 | 2,244 | 2,442 | 5,496 | 10,127 | ||||||||||||||
Total interest expense | 20,290 | 20,227 | 18,659 | 58,678 | 49,671 | ||||||||||||||
Net interest income | 10,981 | 9,126 | 8,077 | 29,013 | 18,333 | ||||||||||||||
Provision for credit losses | 6,928 | 5,799 | 3,446 | 16,742 | 7,339 | ||||||||||||||
Net interest income after provision for credit losses | 4,053 | 3,327 | 4,631 | 12,271 | 10,994 | ||||||||||||||
Noninterest income | |||||||||||||||||||
Dividend income | 374 | 368 | 388 | 1,128 | 1,397 | ||||||||||||||
Loan servicing asset revaluation | (1,786 | ) | (1,862 | ) | (1,951 | ) | (5,383 | ) | (1,566 | ) | |||||||||
Servicing income | 4,958 | 4,607 | 4,602 | 14,922 | 13,304 | ||||||||||||||
Net gains on sales of loans | 25,675 | 22,564 | 13,751 | 68,531 | 33,482 | ||||||||||||||
Net (loss) gain on loans under the fair value option | (4,085 | ) | (2,894 | ) | 2,809 | (4,181 | ) | 12,588 | |||||||||||
Technology and IT support income | 3,311 | 5,174 | 5,376 | 14,255 | 18,456 | ||||||||||||||
Electronic payment processing income | 11,777 | 12,645 | 11,192 | 35,409 | 32,196 | ||||||||||||||
Other noninterest income | 11,627 | 11,418 | 4,859 | 28,557 | 17,808 | ||||||||||||||
Total noninterest income | 51,851 | 52,020 | 41,026 | 153,238 | 127,665 | ||||||||||||||
Noninterest expense | |||||||||||||||||||
Salaries and employee benefits expense | 18,905 | 20,790 | 13,726 | 60,201 | 51,173 | ||||||||||||||
Technology services expense | 1,796 | 3,420 | 2,738 | 8,624 | 10,007 | ||||||||||||||
Electronic payment processing expense | 4,438 | 5,693 | 4,817 | 14,977 | 14,159 | ||||||||||||||
Professional services expense | 3,929 | 2,743 | 3,170 | 11,237 | 9,766 | ||||||||||||||
Other loan origination and maintenance expense | 4,132 | 3,015 | 1,836 | 9,391 | 6,930 | ||||||||||||||
Depreciation and amortization | 517 | 521 | 730 | 1,570 | 2,271 | ||||||||||||||
Other general and administrative costs | 5,130 | 4,382 | 4,303 | 14,570 | 13,814 | ||||||||||||||
Total noninterest expense | 38,847 | 40,564 | 31,320 | 120,570 | 108,120 | ||||||||||||||
Net income before taxes | 17,057 | 14,783 | 14,337 | 44,939 | 30,539 | ||||||||||||||
Income tax expense (benefit) | 5,123 | 3,838 | 3,418 | 12,410 | (5,941 | ) | |||||||||||||
Net income | 11,934 | 10,945 | 10,919 | 32,529 | 36,480 | ||||||||||||||
Dividends to preferred shareholders | (400 | ) | (400 | ) | (400 | ) | (1,200 | ) | (1,049 | ) | |||||||||
Net income available to common shareholders | $ | 11,534 | $ | 10,545 | $ | 10,519 | $ | 31,329 | $ | 35,431 | |||||||||
Earnings per share: | |||||||||||||||||||
Basic | $ | 0.45 | $ | 0.43 | $ | 0.43 | $ | 1.26 | $ | 1.46 | |||||||||
Diluted | $ | 0.45 | $ | 0.43 | $ | 0.43 | $ | 1.26 | $ | 1.46 |
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 and nine month periods ended have been annualized based on calendar days.
Reconciliation of Core EPS to GAAP EPS:
Three Months Ended September 30, 2023 | Nine Months Ended September 30, 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 | $ | 14,337 | $ | — | $ | 14,337 | $ | 30,539 | $ | — | $ | 30,539 | |||||||||||
Income tax expense (benefit) | 3,418 | — | 3,418 | (5,941 | ) | 14,244 | 8,303 | ||||||||||||||||
Net income | 10,919 | — | 10,919 | 36,480 | (14,244 | ) | 22,236 | ||||||||||||||||
Preferred dividends | (400 | ) | — | (400 | ) | (1,049 | ) | — | (1,049 | ) | |||||||||||||
Net income available to common shareholders | $ | 10,519 | $ | — | $ | 10,519 | $ | 35,431 | $ | (14,244 | ) | $ | 21,187 | ||||||||||
Basic: | |||||||||||||||||||||||
Income available to common shareholders | $ | 10,519 | $ | — | $ | 10,519 | $ | 35,431 | $ | (14,244 | ) | $ | 21,187 | ||||||||||
Weighted-average basic shares outstanding | 24,277 | — | 24,277 | 24,255 | — | 24,255 | |||||||||||||||||
Basic | $ | 0.43 | $ | — | $ | 0.43 | $ | 1.46 | $ | 0.59 | $ | 0.87 | |||||||||||
Diluted: | |||||||||||||||||||||||
Income available to common shareholders | $ | 10,519 | $ | — | $ | 10,519 | $ | 35,431 | $ | (14,244 | ) | $ | 21,187 | ||||||||||
Total weighted-average diluted shares outstanding | 24,413 | — | 24,413 | 24,336 | — | 24,336 | |||||||||||||||||
Diluted | $ | 0.43 | $ | — | $ | 0.43 | $ | 1.46 | $ | 0.59 | $ | 0.87 |
Reconciliation of Newtek Bank and NewtekOne Inc. Non-GAAP Measures:
Newtek Bank, NA | As of and for the three months ended | As of and for the nine months ended | |||||||
(in thousands) | September 30, 2024 | June 30, 2024 | September 30, 2023 (as restated) | September 30, 2024 | September 30, 2023 (as restated) | ||||
Return on Average Tangible Common Equity | |||||||||
Net Income (GAAP) | |||||||||
Tax-adjusted amortization of intangibles | 32 | 33 | 35 | 99 | 108 | ||||
Numerator: Adjusted net income | 13,516 | 12,486 | 8,840 | 35,437 | 13,171 | ||||
Average Total Shareholders' Equity1 | 110,124 | 103,678 | 81,601 | 104,884 | 77,286 | ||||
Deduct: Average Goodwill and Intangibles1 | 1,009 | 1,052 | 2,146 | 1,053 | 2,177 | ||||
Denominator: Tangible Average Common Equity1 | |||||||||
Return on Average Tangible Common Equity1 | |||||||||
Return on Average Assets | |||||||||
Numerator: Net Income (GAAP) | |||||||||
Denominator: Average Assets1 | 855,992 | 782,138 | 584,887 | 763,917 | 453,361 | ||||
Return on Average Assets1 | |||||||||
Efficiency Ratio | |||||||||
Numerator: Non-Interest Expense (GAAP) | |||||||||
Net Interest Income (GAAP) | 11,216 | 9,310 | 5,368 | 28,248 | 10,871 | ||||
Non-Interest Income (GAAP) | 31,960 | 31,641 | 23,233 | 90,827 | 54,958 | ||||
Denominator: Total Income | |||||||||
Efficiency Ratio1 |
NewtekOne, Inc. | As of and for the three months ended | As of and for the nine months ended | |||||||
(dollars and number of shares in thousands) | September 30, 2024 | June 30, 2024 | September 30, 2023 (as restated) | September 30, 2024 | September 30, 2023 (as restated) | ||||
Return on Average Tangible Common Equity | |||||||||
Numerator: Net Income (GAAP) | |||||||||
Tax-adjusted amortization of intangibles | 141 | 143 | 279 | 437 | 863 | ||||
Numerator: Adjusted net income | 12,075 | 11,088 | 11,198 | 32,966 | 37,343 | ||||
Average Total Shareholders' Equity1 | 274,888 | 258,326 | 229,906 | 257,081 | 224,052 | ||||
Deduct: Preferred Stock (GAAP) | 19,738 | 19,738 | 19,738 | 19,738 | 19,738 | ||||
Average Common Shareholders' Equity1 | 255,150 | 238,588 | 210,168 | 237,343 | 204,314 | ||||
Deduct: Average Goodwill and Intangibles1 | 29,729 | 29,883 | 31,489 | 29,890 | 31,860 | ||||
Denominator: Average Tangible Common Equity1 | |||||||||
Return on Average Tangible Common Equity1 | |||||||||
Return on Average Assets | |||||||||
Numerator: Net Income (GAAP) | |||||||||
Denominator: Average Assets1 | 1,610,849 | 1,551,009 | 1,424,670 | 1,521,465 | 1,294,762 | ||||
Return on Average Assets1 | |||||||||
Efficiency Ratio | |||||||||
Numerator: Non-Interest Expense (GAAP) | |||||||||
Net Interest Income (GAAP) | 10,981 | 9,126 | 8,077 | 29,013 | 18,333 | ||||
Non-Interest Income (GAAP) | 51,851 | 52,020 | 41,024 | 153,238 | 127,665 | ||||
Denominator: Total Income | |||||||||
Efficiency Ratio1 |
1 Non-GAAP
Reconciliation of NewtekOne, Inc. Tangible Book Value:
NewtekOne, Inc. | September 30, 2024 | June 30, 2024 | September 30, 2023 (as restated) | ||
Tangible Book Value Per Share | |||||
Total Shareholders' Equity (GAAP) | |||||
Deduct: Goodwill and Intangibles (GAAP) | 14,794 | 29,783 | 31,311 | ||
Numerator: Total Tangible Book Value1 | |||||
Denominator: Total Number of Shares Outstanding | 26,018 | 25,852 | 24,645 | ||
Tangible Book Value Per Share1 | |||||
Tangible Book Value Per Common Share | |||||
Total Tangible Book Value1 | |||||
Deduct: Preferred Stock (GAAP) | 19,738 | 19,738 | 19,738 | ||
Numerator: Tangible Book Value Per Common Share1 | |||||
Denominator: Total Number of Shares Outstanding | 26,018 | 25,852 | 24,645 | ||
Tangible Book Value Per Common Share1 |
1 Non-GAAP
FAQ
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