NewtekOne, Inc. Reports Third Quarter 2024 Earnings of $0.45 per Basic and Diluted Common Share

GlobeNewswire11-07

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 ...

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(Nasdaq: NEWT), reports its financial and ...</p>\n\n<a href=\"https://finance.yahoo.com/news/newtekone-inc-reports-third-quarter-211000688.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>NewtekOne, Inc. Reports Third Quarter 2024 Earnings of $0.45 per Basic and Diluted Common Share</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNewtekOne, Inc. Reports Third Quarter 2024 Earnings of $0.45 per Basic and Diluted Common Share\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-07 05:10 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/newtekone-inc-reports-third-quarter-211000688.html><strong>GlobeNewswire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Growth in Deposits, Loans and Payments Segment Lead the Third Quarter 2024 Results\nBOCA RATON, Fla., Nov. 06, 2024 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (Nasdaq: NEWT), reports its financial and ...</p>\n\n<a href=\"https://finance.yahoo.com/news/newtekone-inc-reports-third-quarter-211000688.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PALT","symbol_name":"Paltalk Inc.","start_time":0,"source_url":"https://finance.yahoo.com/news/newtekone-inc-reports-third-quarter-211000688.html","article_id":"2481952535","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/7u_swWxZczmx7njXzC7gFw--~B/aD0xNTg7dz01NDg7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/globenewswire.com/93ebe5351c1e73853bff3d1cec5e054b"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481952535","pubTimestamp":1730927400,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Growth in Deposits, Loans and Payments Segment Lead the Third Quarter 2024 Results. BOCA RATON, Fla., Nov. 06, 2024  -- NewtekOne, Inc. , reports its financial and operating results for the three and nine months ended September 30, 2024.Net income was $11.9 million, and earnings per share  was $0.45 per basic and diluted common share, for the three months ended September 30, 2024; a 4.7% 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 a 4.7% 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 of 20.9% over $9.1 million for the three months ended June 30, 2024, and an increase of 35.8% over $8.1 million for the three months ended September 30, 2023.On September 16, 2024, the Company completed a re","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"PALT":"Paltalk Inc.","NEWT":"NEWTEKONE INC","BAS":"基本能源服务"},"translate_title":"NewtekOne,Inc.报告2024年第三季度每股基本和稀释普通股收益为0.45美元","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BAS":1,"NEWT":0.9,"PALT":0.9},"content_text":"Growth in Deposits, Loans and Payments Segment Lead the Third Quarter 2024 Results\nBOCA 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.\nNewtekOne Financial Highlights for the Three Months Ended September 30, 2024\n\nNet 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; a 4.7% 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 a 4.7% 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.\nNet interest income was $11.0 million for the three months ended September 30, 2024; an increase of 20.9% over $9.1 million for the three months ended June 30, 2024, and an increase of 35.8% over $8.1 million for the three months ended September 30, 2023.\nTotal assets were $1.7 billion at September 30, 2024; an increase of 21.4% from $1.4 billion at December 31, 2023.\nLoans held for investment were $913.0 million at September 30, 2024; an increase of 13.3% over $806.1 million at December 31, 2023.\nTotal borrowings were $655.8 million at September 30, 2024; an increase of 1.8% from $644.1 million at December 31, 2023.\nNet interest margin2 was 3.08% for the three months ended September 30, 2024; an increase of 14.1% compared to 2.70% for the three months ended June 30, 2024, and an increase of 18.5% over 2.60% for the three months ended September 30, 2023.\nReturn on Tangible Common Equity (“ROTCE”)1 of 21.3% for the three months ended September 30, 2024; a decrease of 0.5% over 21.4% for the three months ended June 30, 2024, and a decrease of 14.5% over 24.9% for the three months ended September 30, 2023.\nReturn on Average Assets (“ROAA”)1,2 of 2.9% for the three months ended September 30, 2024; an increase of 3.6% over 2.8% for the three months ended June 30, 2024, and a decrease of 3.3% over 3.0% for the three months ended September 30, 2023.\nEfficiency ratio2 of 61.8% for the three months ended September 30, 2024; an improvement of 6.8% compared to 66.3% for the three months ended June 30, 2024, and an improvement of 3.1% compared to 63.8% for the three months ended September 30, 2023.\nTotal risk-based capital ratio2 was 20.5% at September 30, 2024; an increase of 7.3% over 19.1% at December 31, 2023.\nTier-1 leverage ratio2 was 13.9% at September 30, 2024; an increase of 2.2% over 13.6% at December 31, 2023.\nThe 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; a 32.5% increase over the three months ended September 30, 2023.\nOn 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 (the \"2029 Notes\") (Nasdaq: NEWTH). The 2029 Notes were rated BBB+ by Egan-Jones Ratings Company.\nOn 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.\nOn 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.\n\nPost Third Quarter 2024 Highlights\n\nThe Company maintains its 2024 annual EPS forecast range of $1.85 to $2.05 per basic and diluted common share.\nOn October 21, 2024, the Company paid a quarterly cash dividend of $0.19 per share on its outstanding common shares.\nThe Company forecasts 2025 annual EPS forecast in a range of $2.00 to $2.25 per basic and diluted share.\n\nNewtekOne Financial Highlights for the Nine Months Ended September 30, 2024\n\nNet 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\nNet interest income was $29.0 million for the nine months ended September 30, 2024; an increase of 58.5% over $18.3 million for the nine months ended September 30, 2023.\nNet interest margin2 was 2.91% for the nine months ended September 30, 2024; an increase of 30.5% over 2.23% for the nine months ended September 30, 2023.\nROTCE1 of 21.2% for the nine months ended September 30, 2024; a decrease of 26.9% compared to 29.0% 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.\nROAA1,2 of 2.9% for the nine months ended September 30, 2024; a decrease of 23.7% compared to 3.8% 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.\nEfficiency ratio2 of 66.2% for the nine months ended September 30, 2024; an improvement of 10.7% compared to 74.1% for the nine months ended September 30, 2023.\nThe Newtek Payments segment, which includes NMS and Mobil Money, had pretax income of $14.2 million for the nine months ended September 30, 2024; a 43.4% increase over the nine months ended September 30, 2023.\n\nNewtek Bank, N.A. Financial Highlights\n\nTotal deposits3 were $745.7 million at September 30, 2024; an increase of 12.4% over $663.7 million at June 30, 2024 and an increase of 43.7% over $519.1 million in deposits at December 31, 2023.\nInsured deposits represented approximately 74.6% of total deposits at September 30, 2024.\nNet interest margin was 5.29% for the three months ended September 30, 2024; an increase of 9.5% over 4.83% for the three months ended June 30, 2024, and an increase of 49.9% over 3.53% for the three months ended September 30, 2023.\nROTCE1 of 49.3% for the three months ended September 30, 2024; an increase of 0.8% over 48.9% for the three months ended June 30, 2024, and an increase of 11.8% over 44.1% for the three months ended September 30, 2023.\nROAA1 of 6.3% for the three months ended September 30, 2024; a decrease of 1.6% over 6.4% for the three months ended June 30, 2024, and an increase of 5.0% over 6.0% for the three months ended September 30, 2023.\nEfficiency ratio1 of 39.4% for the three months ended September 30, 2024; an improvement of 6.9% from 42.3% for the three months ended June 30, 2024, and an improvement of 2.2% from 40.3% for the three months ended September 30, 2023.\nTotal risk-based capital ratio was 16.8% at September 30, 2024; a decrease of 26.3% from 22.8% at December 31, 2023.\nTier-1 leverage ratio was 13.3% at September 30, 2024; a decrease of 19.9% from 16.6% at December 31, 2023.\n\nLending Highlights\n\nSBA 7(a) loan closings of $245.3 million for the three months ended September 30, 2024; an increase of 12.5% over $218.0 million of SBA 7(a) loans closings for the three months ended September 30, 2023.\nThe Company forecasts $935.0 million in total SBA 7(a) loan closings for 2024, which would represent a 14.7% increase over 2023.\nNewtek Bank closed $38.4 million of SBA 504 loans for the three months ended September 30, 2024; an increase of 117.0% over $17.7 million SBA 504 loans closed for the three months ended September 30, 2023.\nNewtek 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; a 43.0% increase over $260.2 million of loans closed for the same period in 2023.\n\nBarry 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 $0.45 per basic and diluted common share, beating the midpoint of our previously stated forecast of $0.43. In our first 21 months of operating as a financial holding company, we are continuing to execute on our transition plan that began in January 2023, when we acquired the National Bank of New York City. Acquiring this 61-year old OCC chartered bank and transitioning from our prior business development company structure has taken some time, however we believe that we have successfully demonstrated, quarter after quarter, that we have been able to overcome any hurdles. Our business model and financial results continue to demonstrate that our business and financial solutions offerings, with over two decades of client acceptance and attractive margins, can readily overcome the costs associated with being a small, but growing financial holding company that provides business and financial solutions to independent business owners in all fifty states. Newtek Bank, with $900 million in assets and over 370 dedicated employees, is poised for growth while remaining focused on compliance, risk management, and customer service. We believe that Newtek Bank's low efficiency ratio of 39.4% is evidence that that our strategy of no branches, brokers, business development officers or traditional bankers is a more cost-efficient business strategy. Indeed, we conduct business with an increased level of efficiency and competency with our U.S.-based dedicated professionals, who are available on camera, around-the-clock, 7 days a week, for all of our clients’ needs. We utilize what we view as cutting-edge technology, including aspects of artificial intelligence, to improve our associates’ interface with our clients, and we believe the full potential of our business model has not yet been achieved. We are excited that Newtek Bank was able to outperform standard industry metrics, as well as our previously issued forecasted returns, in terms of ROAA, ROTCE, and efficiency ratios. We believe the market is recognizing our technology-enabled, solutions-provider approach to business banking, as we demonstrate more than sufficient loan loss reserves and capitalization levels, which we will detail during our third quarter 2024 earnings conference call.”\n\n1 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.\n2 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.\nMr. 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 32.5% and 43.4%, respectively, over the same periods in 2023. We believe this pretax income growth has come from clients' appreciating the benefits of our integration of owning a payment processor and an affiliated nationally chartered bank. For example, we have clients that want to process payments with NMS because we also own Newtek Bank and are able to provide clients, through the Newtek Advantage®, real-time analytics and data and transactional capability all in one location for things like daily batches of chargebacks, refunds, specific card charges as well as ACH, and Fed wires, with the ability to integrate these payments directly into certain accounting software packages. We currently anticipate the Payments segment achieving $17.7 million in pretax income for the full year 2024, which would be an increase over 2023 pretax income of $13.3 million for this segment. We possess the ability to service clients through our proprietary platform the Newtek Advantage® and present a payments platform that we view as special. We believe we will continue to grow pretax income in this segment in the fourth quarter of 2024 and throughout 2025. We plan to discuss this double-digit growth and performance in our upcoming conference call. We believe we are well positioned to continue our growth trajectory and, most importantly, fulfill our mission of making our clients more successful each and every day through the utilization of our broad array of business and financial solutions and the Newtek Advantage®. As such, we are maintaining our 2024 earnings guidance of $1.85 to $2.05 per basic and diluted common share and are forecasting 2025 earnings guidance of $2.00 to $2.25 per basic and diluted common share.”\nMr. 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.”\nThird Quarter 2024 Conference Call and Webcast\nA 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.\nPlease 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.\nNote Regarding Dividend Payments\nAmount and timing of dividends, if any, remain subject to the discretion of the Company's Board of Directors.\nNewtekOne®, 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.\nNewtekOne’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.\nNewtek®, 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.\nNote Regarding Forward-Looking StatementsCertain 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.\nSOURCE: NewtekOne, Inc.\nInvestor Relations & Public RelationsContact: Jayne Cavuoto Telephone: (212) 273-8179 / jcavuoto@newtekone.com\n\n\n\nNEWTEKONE, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF FINANCIAL CONDITION(In Thousands, except for Per Share Data)\n\n\n \nSeptember 30, 2024\n \nDecember 31, 2023\n\n\nASSETS\n(Unaudited)\n \n \n\n\nCash and due from banks\n$\n 9,688\n \n \n$\n15,398\n \n\n\nRestricted cash\n \n27,929\n \n \n \n30,919\n \n\n\nInterest bearing deposits in banks\n \n152,805\n \n \n \n137,689\n \n\n\nTotal cash and cash equivalents\n \n190,422\n \n \n \n184,006\n \n\n\nDebt securities available-for-sale, at fair value\n \n23,790\n \n \n \n32,171\n \n\n\nLoans held for sale, at fair value\n \n242,225\n \n \n \n118,867\n \n\n\nLoans held for sale, at LCM\n \n60,203\n \n \n \n56,607\n \n\n\nLoans held for investment, at fair value\n \n394,471\n \n \n \n469,801\n \n\n\nLoans held for investment, at amortized cost, net of deferred fees and costs\n \n518,489\n \n \n \n336,305\n \n\n\nAllowance for credit losses\n \n(26,045\n)\n \n \n(12,574\n)\n\n\nLoans held for investment, at amortized cost, net\n \n492,444\n \n \n \n323,731\n \n\n\nFederal Home Loan Bank and Federal Reserve Bank stock\n \n3,608\n \n \n \n3,635\n \n\n\nSettlement receivable\n \n62,117\n \n \n \n62,230\n \n\n\nJoint ventures, at fair value (cost of $43,321 and $37,864), respectively\n \n55,750\n \n \n \n40,859\n \n\n\nNon-control investments (cost of $680 and $796), respectively\n \n740\n \n \n \n728\n \n\n\nGoodwill and intangibles\n \n14,794\n \n \n \n30,120\n \n\n\nRight of use assets\n \n3,992\n \n \n \n5,701\n \n\n\nDeferred tax asset, net\n \n—\n \n \n \n5,230\n \n\n\nServicing assets\n \n46,111\n \n \n \n39,725\n \n\n\nOther assets\n \n62,984\n \n \n \n56,102\n \n\n\nAssets classified as held for sale\n \n20,519\n \n \n \n—\n \n\n\nTotal assets\n$\n1,674,170\n \n \n$\n1,429,513\n \n\n\n \n \n \n \n\n\nLIABILITIES AND SHAREHOLDERS' EQUITY\n \n \n \n\n\nLiabilities:\n \n \n \n\n\nDeposits:\n \n \n \n\n\nNoninterest-bearing\n$\n11,040\n \n \n$\n10,053\n \n\n\nInterest-bearing\n \n638,418\n \n \n \n453,452\n \n\n\nTotal deposits\n \n649,458\n \n \n \n463,505\n \n\n\nBorrowings\n \n655,834\n \n \n \n644,122\n \n\n\nDividends payable\n \n5,237\n \n \n \n4,792\n \n\n\nLease liabilities\n \n4,883\n \n \n \n6,952\n \n\n\nDeferred tax liabilities, net\n \n4,700\n \n \n \n—\n \n\n\nDue to participants\n \n22,217\n \n \n \n23,796\n \n\n\nAccounts payable, accrued expenses and other liabilities\n \n45,092\n \n \n \n37,300\n \n\n\nLiabilities directly associated with assets classified as held for sale\n \n4,964\n \n \n \n—\n \n\n\nTotal liabilities\n \n1,392,385\n \n \n \n1,180,467\n \n\n\n \n \n \n \n\n\nShareholders' Equity:\n \n \n \n\n\nPreferred stock (par value $0.02 per share; authorized 20 shares, 20 shares issued and outstanding)\n \n19,738\n \n \n \n19,738\n \n\n\nCommon stock (par value $0.02 per share; authorized 199,980 shares, 26,018 and 24,680 issued and outstanding, respectively)\n \n520\n \n \n \n492\n \n\n\nAdditional paid-in capital\n \n216,662\n \n \n \n200,913\n \n\n\nRetained earnings\n \n44,834\n \n \n \n28,051\n \n\n\nAccumulated other comprehensive loss, net of income taxes\n \n31\n \n \n \n(148\n)\n\n\nTotal shareholders' equity\n \n281,785\n \n \n \n249,046\n \n\n\nTotal liabilities and shareholders' equity\n$\n1,674,170\n \n \n$\n1,429,513\n \n\n\n\n\n\n\nNEWTEKONE, INC. AND SUBSIDIARIES\n\n\nCONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)\n\n\n(In Thousands, except for Per Share Data)\n\n\n \nThree Months Ended\n \nNine Months Ended\n\n\n \nSeptember 30, 2024\n \nJune 30, 2024\n \nSeptember 30, 2023(as restated)\n \nSeptember 30, 2024\n \nSeptember 30, 2023(as restated)\n\n\nInterest income\n \n \n \n \n \n \n \n \n \n\n\nDebt securities available-for-sale\n$\n        334\n \n \n$\n374\n \n \n$\n436\n \n \n$\n1,168\n \n \n$\n1,083\n \n\n\nLoans and fees on loans\n \n28,588\n \n \n \n26,773\n \n \n \n23,232\n \n \n \n80,346\n \n \n \n60,341\n \n\n\nOther interest earning assets\n \n2,349\n \n \n \n2,206\n \n \n \n3,068\n \n \n \n6,177\n \n \n \n6,580\n \n\n\nTotal interest income\n \n31,271\n \n \n \n29,353\n \n \n \n26,736\n \n \n \n87,691\n \n \n \n68,004\n \n\n\nInterest expense\n \n \n \n \n \n \n \n \n \n\n\nDeposits\n \n7,314\n \n \n \n6,865\n \n \n \n5,212\n \n \n \n19,755\n \n \n \n10,738\n \n\n\nNotes and securitizations\n \n11,482\n \n \n \n11,118\n \n \n \n11,005\n \n \n \n33,427\n \n \n \n28,806\n \n\n\nBank and FHLB borrowings\n \n1,494\n \n \n \n2,244\n \n \n \n2,442\n \n \n \n5,496\n \n \n \n10,127\n \n\n\nTotal interest expense\n \n20,290\n \n \n \n20,227\n \n \n \n18,659\n \n \n \n58,678\n \n \n \n49,671\n \n\n\nNet interest income\n \n10,981\n \n \n \n9,126\n \n \n \n8,077\n \n \n \n29,013\n \n \n \n18,333\n \n\n\nProvision for credit losses\n \n6,928\n \n \n \n5,799\n \n \n \n3,446\n \n \n \n16,742\n \n \n \n7,339\n \n\n\nNet interest income after provision for credit losses\n \n4,053\n \n \n \n3,327\n \n \n \n4,631\n \n \n \n12,271\n \n \n \n10,994\n \n\n\nNoninterest income\n \n \n \n \n \n \n \n \n \n\n\nDividend income\n \n374\n \n \n \n368\n \n \n \n388\n \n \n \n1,128\n \n \n \n1,397\n \n\n\nLoan servicing asset revaluation\n \n(1,786\n)\n \n \n(1,862\n)\n \n \n(1,951\n)\n \n \n(5,383\n)\n \n \n(1,566\n)\n\n\nServicing income\n \n4,958\n \n \n \n4,607\n \n \n \n4,602\n \n \n \n14,922\n \n \n \n13,304\n \n\n\nNet gains on sales of loans\n \n25,675\n \n \n \n22,564\n \n \n \n13,751\n \n \n \n68,531\n \n \n \n33,482\n \n\n\nNet (loss) gain on loans under the fair value option\n \n(4,085\n)\n \n \n(2,894\n)\n \n \n2,809\n \n \n \n(4,181\n)\n \n \n12,588\n \n\n\nTechnology and IT support income\n \n3,311\n \n \n \n5,174\n \n \n \n5,376\n \n \n \n14,255\n \n \n \n18,456\n \n\n\nElectronic payment processing income\n \n11,777\n \n \n \n12,645\n \n \n \n11,192\n \n \n \n35,409\n \n \n \n32,196\n \n\n\nOther noninterest income\n \n11,627\n \n \n \n11,418\n \n \n \n4,859\n \n \n \n28,557\n \n \n \n17,808\n \n\n\nTotal noninterest income\n \n51,851\n \n \n \n52,020\n \n \n \n41,026\n \n \n \n153,238\n \n \n \n127,665\n \n\n\nNoninterest expense\n \n \n \n \n \n \n \n \n \n\n\nSalaries and employee benefits expense\n \n18,905\n \n \n \n20,790\n \n \n \n13,726\n \n \n \n60,201\n \n \n \n51,173\n \n\n\nTechnology services expense\n \n1,796\n \n \n \n3,420\n \n \n \n2,738\n \n \n \n8,624\n \n \n \n10,007\n \n\n\nElectronic payment processing expense\n \n4,438\n \n \n \n5,693\n \n \n \n4,817\n \n \n \n14,977\n \n \n \n14,159\n \n\n\nProfessional services expense\n \n3,929\n \n \n \n2,743\n \n \n \n3,170\n \n \n \n11,237\n \n \n \n9,766\n \n\n\nOther loan origination and maintenance expense\n \n4,132\n \n \n \n3,015\n \n \n \n1,836\n \n \n \n9,391\n \n \n \n6,930\n \n\n\nDepreciation and amortization\n \n517\n \n \n \n521\n \n \n \n730\n \n \n \n1,570\n \n \n \n2,271\n \n\n\nOther general and administrative costs\n \n5,130\n \n \n \n4,382\n \n \n \n4,303\n \n \n \n14,570\n \n \n \n13,814\n \n\n\nTotal noninterest expense\n \n38,847\n \n \n \n40,564\n \n \n \n31,320\n \n \n \n120,570\n \n \n \n108,120\n \n\n\nNet income before taxes\n \n17,057\n \n \n \n14,783\n \n \n \n14,337\n \n \n \n44,939\n \n \n \n30,539\n \n\n\nIncome tax expense (benefit)\n \n5,123\n \n \n \n3,838\n \n \n \n3,418\n \n \n \n12,410\n \n \n \n(5,941\n)\n\n\nNet income\n \n11,934\n \n \n \n10,945\n \n \n \n10,919\n \n \n \n32,529\n \n \n \n36,480\n \n\n\nDividends to preferred shareholders\n \n(400\n)\n \n \n(400\n)\n \n \n(400\n)\n \n \n(1,200\n)\n \n \n(1,049\n)\n\n\nNet income available to common shareholders\n$\n11,534\n \n \n$\n10,545\n \n \n$\n10,519\n \n \n$\n31,329\n \n \n$\n35,431\n \n\n\n \n \n \n \n \n \n \n \n \n \n\n\nEarnings per share:\n \n \n \n \n \n \n \n \n \n\n\nBasic\n$\n0.45\n \n \n$\n0.43\n \n \n$\n0.43\n \n \n$\n1.26\n \n \n$\n1.46\n \n\n\nDiluted\n$\n0.45\n \n \n$\n0.43\n \n \n$\n0.43\n \n \n$\n1.26\n \n \n$\n1.46\n \n\n\n\nReconciliation of GAAP to Non-GAAP Financial Measures (unaudited)The information provided below presents a reconciliation of each of our non-GAAP financial measures to the most directly comparable GAAP financial measure. Ratios for three and nine month periods ended have been annualized based on calendar days.\nReconciliation of Core EPS to GAAP EPS:\n\n\n\n \n \nThree Months Ended September 30, 2023\n \nNine Months Ended September 30, 2023\n\n\n \n \nGAAP EPS\n \nAdjustments\n \nCore EPS\n \nGAAP EPS\n \nAdjustments\n \nCore EPS\n\n\n \n \nBased on Net Income\n \nDiscrete Tax Benefits on Reorg\n \nBased on Adjusted Net Income\n \nBased on Net Income\n \nDiscrete Tax Benefits on Reorg\n \nBased on Adjusted Net Income\n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\nNet income before taxes\n \n$\n14,337\n \n \n$\n—\n \n$\n14,337\n \n \n$\n30,539\n \n \n$\n—\n \n \n$\n30,539\n \n\n\nIncome tax expense (benefit)\n \n \n3,418\n \n \n \n—\n \n \n3,418\n \n \n \n(5,941\n)\n \n \n14,244\n \n \n \n8,303\n \n\n\nNet income\n \n \n10,919\n \n \n \n—\n \n \n10,919\n \n \n \n36,480\n \n \n \n(14,244\n)\n \n \n22,236\n \n\n\nPreferred dividends\n \n \n(400\n)\n \n \n—\n \n \n(400\n)\n \n \n(1,049\n)\n \n \n—\n \n \n \n(1,049\n)\n\n\nNet income available to common shareholders\n \n$\n10,519\n \n \n$\n—\n \n$\n10,519\n \n \n$\n35,431\n \n \n$\n(14,244\n)\n \n$\n21,187\n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\nBasic:\n \n \n \n \n \n \n \n \n \n \n \n \n\n\nIncome available to common shareholders\n \n$\n10,519\n \n \n$\n—\n \n$\n10,519\n \n \n$\n35,431\n \n \n$\n(14,244\n)\n \n$\n21,187\n \n\n\nWeighted-average basic shares outstanding\n \n \n24,277\n \n \n \n—\n \n \n24,277\n \n \n \n24,255\n \n \n \n—\n \n \n \n24,255\n \n\n\nBasic\n \n$\n0.43\n \n \n$\n—\n \n$\n0.43\n \n \n$\n1.46\n \n \n$\n0.59\n \n \n$\n0.87\n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\n\nDiluted:\n \n \n \n \n \n \n \n \n \n \n \n \n\n\nIncome available to common shareholders\n \n$\n10,519\n \n \n$\n—\n \n$\n10,519\n \n \n$\n35,431\n \n \n$\n(14,244\n)\n \n$\n21,187\n \n\n\nTotal weighted-average diluted shares outstanding\n \n \n24,413\n \n \n \n—\n \n \n24,413\n \n \n \n24,336\n \n \n \n—\n \n \n \n24,336\n \n\n\nDiluted\n \n$\n0.43\n \n \n$\n—\n \n$\n0.43\n \n \n$\n1.46\n \n \n$\n0.59\n \n \n$\n0.87\n \n\n\n\nReconciliation of Newtek Bank and NewtekOne Inc. Non-GAAP Measures:\n\n\n\nNewtek Bank, NA\nAs of and for the three months ended \n \nAs of and for the nine months ended \n\n\n(in thousands)\nSeptember 30, 2024\n \nJune 30, 2024\n \nSeptember 30, 2023(as restated)\n \nSeptember 30, 2024\n \nSeptember 30, 2023(as restated)\n\n\nReturn on Average Tangible Common Equity\n \n \n \n \n \n \n \n \n \n\n\nNet Income (GAAP)\n$13,484\n \n$12,453\n \n$8,805\n \n$35,338\n \n$13,063\n\n\nTax-adjusted amortization of intangibles\n32\n \n33\n \n35\n \n99\n \n108\n\n\nNumerator: Adjusted net income\n13,516\n \n12,486\n \n8,840\n \n35,437\n \n13,171\n\n\nAverage Total Shareholders' Equity1\n110,124\n \n103,678\n \n81,601\n \n104,884\n \n77,286\n\n\nDeduct: Average Goodwill and Intangibles1\n1,009\n \n1,052\n \n2,146\n \n1,053\n \n2,177\n\n\nDenominator: Tangible Average Common Equity1\n$109,115\n \n$102,626\n \n$79,455\n \n$103,831\n \n$75,109\n\n\nReturn on Average Tangible Common Equity1\n49.3%\n \n48.9%\n \n44.1%\n \n45.6%\n \n23.4%\n\n\n \n \n \n \n \n \n \n \n \n \n\n\nReturn on Average Assets\n \n \n \n \n \n \n \n \n \n\n\nNumerator: Net Income (GAAP)\n$13,484\n \n$12,453\n \n$8,805\n \n$35,338\n \n$13,063\n\n\nDenominator: Average Assets1\n855,992\n \n782,138\n \n584,887\n \n763,917\n \n453,361\n\n\nReturn on Average Assets1\n6.3%\n \n6.4%\n \n6.0%\n \n6.2%\n \n3.9%\n\n\n \n \n \n \n \n \n \n \n \n \n\n\nEfficiency Ratio\n \n \n \n \n \n \n \n \n \n\n\nNumerator: Non-Interest Expense (GAAP)\n$17,006\n \n$17,308\n \n$11,516\n \n$51,747\n \n$38,682\n\n\nNet Interest Income (GAAP)\n11,216\n \n9,310\n \n5,368\n \n28,248\n \n10,871\n\n\nNon-Interest Income (GAAP)\n31,960\n \n31,641\n \n23,233\n \n90,827\n \n54,958\n\n\nDenominator: Total Income\n$43,176\n \n$40,951\n \n$28,601\n \n$119,075\n \n$65,829\n\n\nEfficiency Ratio1\n39.4%\n \n42.3%\n \n40.3%\n \n43.5%\n \n58.8%\n\n\n\n\n\n\nNewtekOne, Inc.\nAs of and for the three months ended \n \nAs of and for the nine months ended \n\n\n(dollars and number of shares in thousands)\nSeptember 30, 2024\n \nJune 30, 2024\n \nSeptember 30, 2023(as restated)\n \nSeptember 30, 2024\n \nSeptember 30, 2023(as restated)\n\n\nReturn on Average Tangible Common Equity\n \n \n \n \n \n \n \n \n \n\n\nNumerator: Net Income (GAAP)\n$11,934\n \n$10,945\n \n$10,919\n \n$32,529\n \n$36,480\n\n\nTax-adjusted amortization of intangibles\n141\n \n143\n \n279\n \n437\n \n863\n\n\nNumerator: Adjusted net income\n12,075\n \n11,088\n \n11,198\n \n32,966\n \n37,343\n\n\nAverage Total Shareholders' Equity1\n274,888\n \n258,326\n \n229,906\n \n257,081\n \n224,052\n\n\nDeduct: Preferred Stock (GAAP)\n19,738\n \n19,738\n \n19,738\n \n19,738\n \n19,738\n\n\nAverage Common Shareholders' Equity1\n255,150\n \n238,588\n \n210,168\n \n237,343\n \n204,314\n\n\nDeduct: Average Goodwill and Intangibles1\n29,729\n \n29,883\n \n31,489\n \n29,890\n \n31,860\n\n\nDenominator: Average Tangible Common Equity1\n$225,421\n \n$208,705\n \n$178,679\n \n$207,453\n \n$172,454\n\n\nReturn on Average Tangible Common Equity1\n21.3%\n \n21.4%\n \n24.9%\n \n21.2%\n \n29.0%\n\n\n \n \n \n \n \n \n \n \n \n \n\n\nReturn on Average Assets\n \n \n \n \n \n \n \n \n \n\n\nNumerator: Net Income (GAAP)\n$11,934\n \n$10,945\n \n$10,919\n \n$32,529\n \n$36,480\n\n\nDenominator: Average Assets1\n1,610,849\n \n1,551,009\n \n1,424,670\n \n1,521,465\n \n1,294,762\n\n\nReturn on Average Assets1\n2.9%\n \n2.8%\n \n3.0%\n \n2.9%\n \n3.8%\n\n\n \n \n \n \n \n \n \n \n \n \n\n\nEfficiency Ratio\n \n \n \n \n \n \n \n \n \n\n\nNumerator: Non-Interest Expense (GAAP)\n$38,847\n \n$40,564\n \n$31,320\n \n$120,570\n \n$108,120\n\n\nNet Interest Income (GAAP)\n10,981\n \n9,126\n \n8,077\n \n29,013\n \n18,333\n\n\nNon-Interest Income (GAAP)\n51,851\n \n52,020\n \n41,024\n \n153,238\n \n127,665\n\n\nDenominator: Total Income\n$62,832\n \n$61,146\n \n$49,101\n \n$182,251\n \n$145,998\n\n\nEfficiency Ratio1\n61.8%\n \n66.3%\n \n63.8%\n \n66.2%\n \n74.1%\n\n\n\n1 Non-GAAP\nReconciliation of NewtekOne, Inc. Tangible Book Value:\n\n\n\nNewtekOne, Inc.\nSeptember 30, 2024\n \nJune 30, 2024\n \nSeptember 30, 2023(as restated)\n\n\nTangible Book Value Per Share\n \n \n \n \n \n\n\nTotal Shareholders' Equity (GAAP)\n$281,785\n \n$274,002\n \n$242,202\n\n\nDeduct: Goodwill and Intangibles (GAAP)\n14,794\n \n29,783\n \n31,311\n\n\nNumerator: Total Tangible Book Value1\n$266,991\n \n$244,219\n \n$210,891\n\n\nDenominator: Total Number of Shares Outstanding\n26,018\n \n25,852\n \n24,645\n\n\nTangible Book Value Per Share1\n$10.26\n \n$9.45\n \n$8.56\n\n\n \n \n \n \n \n \n\n\nTangible Book Value Per Common Share\n \n \n \n \n \n\n\nTotal Tangible Book Value1\n$266,991\n \n$244,219\n \n$210,891\n\n\nDeduct: Preferred Stock (GAAP)\n19,738\n \n19,738\n \n19,738\n\n\nNumerator: Tangible Book Value Per Common Share1\n$247,253\n \n$224,481\n \n$191,153\n\n\nDenominator: Total Number of Shares Outstanding\n26,018\n \n25,852\n \n24,645\n\n\nTangible Book Value Per Common Share1\n$9.50\n \n$8.68\n \n$7.76\n\n\n\n1 Non-GAAP","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481952535"}