NewtekOne NASDAQ: NEWT reported third-quarter 2026 diluted earnings per share of $0.34 and reiterated its full-year earnings guidance of $1.70 to $1.80 per share, as the company cited continued deposit growth, rising net interest income and expansion of its small-business lending platform.
Chairman, President and Chief Executive Officer Barry Sloane said tangible book value reached $12.30 per share at quarter-end, up 10% from a year earlier and 78% since NewtekOne acquired its bank in January 2023 and became a financial holding company. Book value was $12.80 per share.
Sloane said operating expenses were flat sequentially and up 3.7% year over year while assets increased 47%. He also highlighted continued growth in Newtek Bank deposits, which rose from $142 million when the bank was acquired to $2.6 billion over 15 quarters.
Deposit Growth and Lending Activity
Non-affiliate business deposits increased by $13 million from the second quarter and by $109 million from the prior-year period, according to Sloane. Core consumer deposits rose $231 million sequentially and $1.1 billion year over year.
Year-to-date loan originations totaled $1.2 billion, a 12% increase from the first nine months of 2025. For the Small Business Administration’s fiscal year ended Sept. 30, 2026, Newtek Bank ranked first by number of SBA loans approved and second by dollar volume, Sloane said.
The company operates a digital platform focused on U.S. small and medium-sized businesses, offering banking, lending, insurance, payments and payroll services. Sloane said NewtekOne’s proprietary NewTracker platform generates 600 to 800 unique business referrals daily through alliances with financial institutions, trade associations, accountants, law firms and other partners.
NewtekOne has more than 1,000 alliance-partner contracts and does not pay for referrals unless it provides a solution to the customer, Sloane said. The company reported approximately 47,000 depository accounts and said it operates without traditional bank branches.
Net Interest Income Reaches Record
Chief Financial Officer Frank DeMaria said third-quarter net interest income totaled $18.9 million, the company’s highest quarterly level since becoming a financial holding company nearly four years ago. Net interest income rose 26% sequentially and 30% from a year earlier.
DeMaria attributed the increase partly to a full quarter of interest income from Long Am commercial and industrial loans originated in the second quarter, as well as the company’s decision to retain government-guaranteed portions of SBA 7(a) loans on its balance sheet longer than it historically has.
For the first nine months of 2026, net interest income increased 20% from the comparable 2025 period. Net interest income represented 26% of third-quarter revenue and 23% of year-to-date revenue, compared with 19% and 20%, respectively, in the prior-year periods.
DeMaria also cited a favorable trend in net interest margin, driven by higher earning-asset yields, stable deposit costs and lower borrowing costs.
During the question-and-answer session, Sloane said fourth-quarter earnings should benefit from a seasonal lift in lending originations as well as continued growth in net interest income. He said the company expects net interest income to grow roughly 20% sequentially, according to its earnings release.
Sloane added that NewtekOne is seeking to diversify between selling SBA loans and retaining them for interest income. He said SBA loans are typically priced at prime plus 3%, or roughly a 10% coupon at current rates, compared with a cost of funds of about 3.6% to 3.65%.
Credit Reserves and Lending Outlook
Newtek Bank held a $57 million allowance for credit losses, DeMaria said, with nearly 90% of that reserve tied to unguaranteed SBA 7(a) loans. The $51 million reserve against the unguaranteed SBA portfolio represented 8.1% of those balances.
Sloane said higher interest rates and persistent inflation have created pressure on older loan vintages and small-business borrowers. The company has incorporated those conditions into its risk models, current expected credit loss calculations and business valuations, he said.
NewtekOne has moderated its anticipated loan-originations volume and tightened underwriting standards in response to the operating environment, Sloane said.
Asked about an increase in nonperforming Long Am C&I loans to $82 million from $46 million in the prior quarter, Sloane said the portfolio exceeds $1 billion and is seasoning in line with expectations for business lending. He said there was no specific industry concentration behind the increase.
The company expects to complete a securitization in January 2027 backed by approximately $350 million to $400 million of collateral, with Sloane indicating the transaction is more likely to be near $400 million. He said the securitization would remove the related assets from the balance sheet, subject to the company maintaining appropriate capital for retained ownership certificates.
Strategic Alternatives and Technology Value
Sloane said NewtekOne is exploring strategic alternatives intended to help the market recognize the value of its business, though he did not identify a specific transaction under consideration. He said the company regularly speaks with strategic alliance partners, technology providers and parties interested in components of its organization.
He pointed to the recent acquisition agreement involving fintech company Bluevine and Valley National Bank as an example of market interest in digital banking technology. Sloane said NewtekOne’s balance sheet carried $14 million of intangible and goodwill assets because the company has historically expensed much of its internally developed intellectual property and technology spending.
“We will always be opportunistic to recognize value and reduce risk for our shareholders,” Sloane said, adding that the company believes its technology platform and digital origination capabilities are not fully understood by the market.
About NewtekOne (NASDAQ:NEWT)
NewtekOne, Inc is a financial holding company that provides banking and business services to small and medium-sized businesses throughout the United States. The company operates primarily through Newtek Bank, National Association, a national bank that offers commercial lending, Small Business Administration (SBA) loans, business deposit accounts and treasury management services.
NewtekOne's offerings are designed to address a range of business needs, including working capital, commercial real estate and equipment financing, payment processing, payroll, insurance and technology-related services.
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