NewtekOne NASDAQ: NEWT used its fourth-quarter 2025 earnings call to highlight three years of operating an OCC-chartered bank, continued deposit growth, and management’s expectations for improving credit trends as a legacy non-bank SBA portfolio continues to run off.
President and CEO Barry Sloane said the company is “extremely pleased” with the January 2023 acquisition of National Bank of New York City and emphasized Newtek’s positioning as a technology-enabled financial institution focused on independent business owners. Sloane pointed to progress in digital account opening and lending systems, “no-fee” deposit products, and what he described as long-amortization “adult loans” designed to provide lower monthly payments than short-term, high-cost alternatives.
Quarterly and full-year results, plus 2026 guidance
Newtek reported fourth-quarter 2025 EPS of $0.65 (basic and diluted). For full-year 2025, EPS was $2.21 basic and $2.18 diluted, which management said represented year-over-year increases of 12% and 11%, respectively.
Sloane also cited full-year 2025 net income before taxes of approximately $80 million and total revenue (defined as net interest income plus non-interest income) of $284 million, up 10.6% from $257 million in 2024.
For 2026, CFO Frank DeMaria reiterated diluted EPS guidance of $2.15 to $2.55, with a midpoint of $2.35. DeMaria said the company’s outlook incorporates the following assumptions:
- $1 billion of SBA 7(a) originations
- $500 million of “ALP” (long-amortizing C&I loans) originations
- $175 million of SBA 504 originations
- $150 million of net growth in the combined C&I and CRE portfolios
Management also highlighted tangible book value growth, stating tangible book value ended 2025 at $12.19, compared with approximately $6.92 at the start of the bank holding company period referenced on the call. Sloane added that Newtek has paid $2.24 of dividends during its time as a bank holding company and cited a $4.76 increase in tangible book value per share since conversion.
Deposit growth and customer cross-sell initiatives
Newtek emphasized deposit gathering as a key driver of its banking model. Sloane said the company opened 9,000 new depository accounts in the fourth quarter and had 34,000 active depository accounts.
Business deposits increased $34 million in the fourth quarter and $164 million for the year, while consumer deposits increased $167 million in the fourth quarter and $293 million for the year. Sloane said roughly 50% of Newtek’s bank business lending clients have opened a business deposit account since the acquisition of the bank. He also noted the company has been offering life insurance products to bank lending clients and said 25% of borrowers have purchased life insurance through the Newtek Agency.
During Q&A, Sloane attributed increased account openings to digital, “frictionless” access for both business and consumer accounts, competitive rates, and what he described as strong client retention. He also pushed back on the idea that higher-rate deposits are inherently unstable, arguing that customers receiving a market rate are less likely to leave.
DeMaria added that Newtek Bank’s cost of deposits declined roughly 16 basis points sequentially and said deposit mix has benefited from growth in business deposits. He also said Newtek’s insured deposit rate was 74% at the time of the call.
Management described process changes intended to deepen relationships. Sloane said loan application data now populates the deposit account application, and borrowers are required to make loan payments out of a Newtek account. In response to an analyst question, Sloane indicated the related account pays around 1% interest.
ALP securitization momentum and credit metrics
Management repeatedly highlighted growth in its Alternative Loan Program (ALP), described as long-amortizing C&I loans originated for sale into joint ventures or securitizations. Sloane said Newtek closed its largest ALP securitization on January 21, 2026, and described the transaction as 10 times oversubscribed, with 38 institutions subscribing and 32 purchasing notes after repricing. He added that 10 of the purchasing institutions were new to Newtek securitizations.
On credit, Sloane said consolidated non-performing loans (NPLs) declined for two consecutive quarters, moving from 7.3% to 7.1% and then to 6.9% in the fourth quarter of 2025.
For ALP specifically, Sloane cited $27.6 million of non-performing ALP loans on a current origination balance of $694 million (with total originations he placed at roughly $820 million to $830 million). He said total charge-offs to date for ALP were about $6 million. He also referenced a weighted average loan-to-value at origination of 48% and debt service coverage of 3.3.
Discussing securitization economics, Sloane said the gross spread before a 1% servicing fee on the last two deals was about 665 to 670 basis points, with a net spread of 565 to 570 basis points, describing the structure as matched-funded for term.
Legacy NSBF runoff, charge-offs, and outlook
Management also addressed Newtek Small Business Finance (NSBF), the company’s legacy non-bank SBA lending subsidiary, which Sloane characterized as a stressed portfolio concentrated in 2021-2023 vintages that faced rising interest rates and cost inflation.
Sloane said NSBF’s loss declined to approximately $20 million in 2025 from $28.7 million in 2024, and he expects the NSBF loss to “materially decline throughout 2026.” He also said the NSBF portfolio has shrunk as a percentage of the balance sheet, from 32% previously to 13%, with only $127 million of notes issued in securitizations remaining.
In Q&A, DeMaria said net charge-offs at the bank were $8.2 million for the quarter and $23 million for the year. Management also provided a breakout of a reported unrealized gain discussed by an analyst, with DeMaria saying roughly 35% was attributable to ALP and the remainder to SBA 7(a) loans being held, while noting a slight loss in NSBF.
On SBA 7(a) production, Sloane discussed recent rule changes and said the company expects volumes to improve. He cited disruptions including a “citizenship issue,” limits on refinancing certain MCA products, and an anticipated move away from the SBSS score in favor of lenders’ own scoring methodologies. Sloane argued Newtek is positioned competitively because it underwrites using traditional credit principles and has technology to support that process.
Sloane closed the call by pointing to “good momentum” entering 2026, while acknowledging challenges, and reiterated Newtek’s intent to follow the path of other technology-enabled banking disruptors, with a focus on small and medium-sized business owners.
About NewtekOne NASDAQ: NEWT
NewtekOne, Inc NASDAQ: NEWT is a publicly traded business development company that specializes in providing financial and business services to small and medium‐sized enterprises across the United States. Operating under the trade name The Newtek Small Business Finance, the company offers a diversified array of lending solutions designed to meet the working capital, equipment acquisition and growth needs of its clients.
The company's core lending offerings include Small Business Administration (SBA) 7(a) loans, equipment financing, lines of credit and commercial real estate financing.
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