Welcome to our dedicated page for NewtekOne news (Ticker: NEWT), a resource for investors and traders seeking the latest updates and insights on NewtekOne stock.
Overview of NewtekOne, Inc.
NewtekOne, Inc. (symbol: NEWT) is a multi-faceted financial holding company that blends traditional financial services with cutting-edge technology solutions. With a business model that integrates banking, lending, payment processing, and technology-driven service offerings, NewtekOne is engineered to serve independent business owners and small- to medium-sized businesses across the United States. Utilizing industry-specific tools and proprietary systems like its patented NewTracker software, the company delivers efficient, cost-effective processing and an integrated online dashboard that centralizes all financial and business solutions.
Core Business Segments
NewtekOne operates through four key reportable segments that form the backbone of its comprehensive service offering:
- Banking: Through its nationally chartered bank subsidiary, Newtek Bank, N.A., the company offers a spectrum of banking solutions with an emphasis on digital account opening, streamlined deposit processes, and a technology-enabled banking experience.
- Lending: With specialized programs including SBA lending, alternative loan programs, and conventional commercial loans, NewtekOne employs a disciplined yet innovative underwriting system designed to manage risk while optimizing returns.
- Payments: NewtekOne’s integrated electronic payment processing capabilities allow clients to access real-time transaction analytics and data management via the Newtek Advantage platform, enhancing operational visibility and efficiency.
- Technology Solutions: Focused on providing cloud computing, data backup, IT consulting, and web services, the company ensures that its clients are supported by state-of-the-art financial and technological resources.
Integrated Technology and Business Process
At the heart of NewtekOne’s operations is its innovative NewTracker system which epitomizes its commitment to leveraging technology for streamlined business operations. This system facilitates the rapid acquisition and processing of client data, ensuring that business owners can access expert advice in areas including Banking, Lending, Payroll, and Insurance—all through one simple, secure online dashboard. The use of such advanced technology underscores the company's unique value proposition and underpins its competitive differentiation in a crowded financial services market.
Market Position and Operational Excellence
NewtekOne has built a reputation as a reliable partner by offering a consolidated suite of business and financial services. This integration enables a frictionless customer experience where multiple services are interlinked and supported by transparent, regulated financial reporting. The emphasis on compliance with regulatory standards, including Sarbanes-Oxley and other industry-specific requirements, highlights its commitment to risk management and operational integrity. This efficient, technology-enabled model allows NewtekOne to maintain cost efficiency and fosters long-term relationships with its clients through continuous support and quality service delivery.
Expertise, Experience, and Trustworthiness
With decades of experience in financial services, NewtekOne demonstrates deep industry expertise by continuously refining its operational strategies to meet the evolving needs of independent business owners. The company’s ability to merge traditional banking with technological innovation builds a bridge between established financial practices and modern digital solutions, setting it apart from many of its competitors. The company's transparent business practices, robust financial architecture, and ongoing commitment to customer service contribute to its strong reputation and reliability.
Competitive Landscape and Strategic Differentiators
Unlike traditional bank holding companies that rely on branch-based operations and conventional methods for customer acquisition, NewtekOne’s model capitalizes on digital solutions and efficient risk management processes. The strategic integration of technology with financial services, exemplified by its patented NewTracker system and the unified Newtek Advantage dashboard, reinforces its standing in a competitive market by offering independent businesses a streamlined one-stop solution. Such differentiation supports both its operational growth and its ability to respond to the ever-changing dynamics of the financial industry.
Conclusion
Overall, NewtekOne, Inc. presents a comprehensive and adaptive range of financial and business solutions designed to empower independent business owners. By bridging robust, regulated financial services with a forward-thinking technological approach, the company offers a complete package that enhances operational efficiency and financial performance. Whether through its advanced digital banking platform or its diverse lending and payment processing capabilities, NewtekOne continues to solidify its status as a credible, knowledgeable, and innovative partner in the financial services sector.
NewtekOne (Nasdaq: NEWT) has agreed to sell its subsidiary Newtek Technology Solutions (NTS) to Paltalk (Nasdaq: PALT). The deal includes $4 million in cash and 4 million shares of Paltalk preferred stock, with a potential $5 million earn-out based on future performance. This divestiture fulfills NewtekOne's commitment to the Federal Reserve following its acquisition of Newtek Bank. NTS manages IT for about 17,000 customers. The deal is expected to close in Q4 2024 or Q1 2025, subject to approvals. NewtekOne will retain a 30.3% equity interest in Paltalk and one board seat. The sale aims to provide continuity for NTS customers while allowing NewtekOne to participate in potential upside.
NewtekOne (Nasdaq: NEWT) reports strong Q2 2024 financial results. Net income was $10.9 million, with an EPS of $0.43, marking a 13.2% increase from Q1 2024 and a 59.3% increase from Q2 2023. Net interest income rose by 2.2% quarter-over-quarter to $9.1 million. Total assets increased by 14.3% to $1.6 billion. Loans held for investment grew by 7.6% to $867.7 million. However, the net interest margin decreased to 2.70% from 2.92% in Q1 2024. NewtekOne completed a $71.875 million public offering of 8.50% fixed-rate senior notes due 2029. They maintained their 2024 annual EPS forecast of $1.85-$2.05.
Highlights include a 17.4% increase in total deposits to $663.7 million and a 13% growth in total loans. The company forecasts $935 million in total SBA 7(a) loan fundings for 2024. Additionally, Newtek Bank sold $3.0 million of past due and non-accrual loans. Despite positive quarterly performance, net income for the first half of 2024 decreased to $20.6 million from $25.6 million in H1 2023, which had benefited from a $14.2 million income tax benefit.
NewtekOne, Inc. (NASDAQ: NEWT) has successfully closed a $154,320,000 alternative business loan backed securitization through its joint venture, Newtek-TSO II Conventional Credit Partners, LP. The securitization, backed by $190,520,000 of collateral, includes $137,170,000 of Class A Notes and $17,150,000 of Class B Notes, rated 'A (sf)' and 'BBB (high) (sf)' respectively by Morningstar DBRS.
The Notes achieved an 81.0% advance rate with a combined weighted average yield of 6.724%. This marks NewtekOne's second term asset-backed securitization for alternative loan program (ALP) loans, which are non-conforming to SBA 7(a) loan requirements. The company expects the ALP to be a key driver of future earnings growth and profitability, with potential for 20% to 30% returns on equity.
NewtekOne will announce its second quarter 2024 financial results on August 5, 2024, after the market closes. This release will be followed by a conference call on August 6, 2024, at 8:30 am ET, led by CEO Barry Sloane and CFO M. Scott Price. Participants are advised to pre-register online to secure a spot for the conference call. The earnings presentation will be available on the company's website on the evening of August 5, 2024. A replay of the call will also be accessible on the website for 90 days.
NewtekOne announced a quarterly cash dividend of $0.19 per share, approved by the Board of Directors. The dividend will be paid on July 19, 2024, to shareholders recorded by July 9, 2024. The decision on dividend amounts and timing remains at the discretion of the Board. The announcement demonstrates the company's commitment to returning value to shareholders.
NewtekOne, a Nasdaq-listed company (symbol: NEWT), announced that CEO Barry Sloane and CFO M. Scott Price will attend the 25th Annual KBW Community Bank Investor Conference. The event will be held on July 30-31, 2024, at the Hilton New York Midtown. They will hold group investor meetings. For scheduling, contact KBW representatives or Jayne Cavuoto, Director of Investor Relations at NewtekOne.
NewtekOne announced it will webcast its Analyst and Investor Day on Thursday, June 13, 2024, starting at 9:00 AM EDT on its corporate website. To join, participants must register online at least 15 minutes before the event. A replay and presentation will be available on the website for 90 days after the live event. Interested in-person attendees can email Jayne Cavuoto for details.
NewtekOne announced the completion of a public offering of $71.875 million in 8.50% Fixed Rate Senior Notes due 2029. The company received $69,718,750 in proceeds before expenses. The Notes mature on June 1, 2029, and can be redeemed starting June 1, 2027, at 100% of the principal plus accrued interest. The interest rate is 8.50% annually, payable quarterly. The Notes trade on Nasdaq under 'NEWTG'. Proceeds will fund investments, repay debt, and support general corporate purposes.
Joint book-running managers included Keefe, Bruyette & Woods, Raymond James & Associates, and B. Riley Securities. Barry Sloane, President and CEO, highlighted the strong demand and increased capital raise. He noted the company's solid financial performance with a ROAA of 2.8% and ROTCE of 20.6% in Q1 2024.
NewtekOne, Inc. (Nasdaq: NEWT) will hold an Analyst and Investor Day on June 13, 2024, at its headquarters in Boca Raton, Florida, and virtually via Microsoft Teams. Interested individuals can register to attend the event.
NewtekOne, Inc. reported Q1 2024 financial results with net income of $9.7 million, EPS of $0.38 per basic and diluted share, a 7.2% increase in net interest income, and total assets of $1.5 billion. The company raised its 2024 annual earnings forecast to $1.85-$2.05 per share. Newtek Bank saw a sequential deposit increase of 8.9% and strong financial metrics like net interest margin of 4.80% and ROTCE of 37.9%. The company remains confident in its business model and growth prospects.
FAQ
What is the current stock price of NewtekOne (NEWT)?
What is the market cap of NewtekOne (NEWT)?
What core services does NewtekOne, Inc. offer?
How does NewtekOne differentiate itself from traditional financial institutions?
What are the primary business segments of NewtekOne?
How does the patented NewTracker system benefit clients?
What regulatory standards does NewtekOne adhere to?
How does NewtekOne provide value to small- and medium-sized businesses?
What is the significance of the Newtek Advantage platform?
How does NewtekOne manage risk within its lending operations?
