Newtekone . 8.50% Fixed Rate Senior Notes Due 2029 Stock Earnings Reports

NewtekOne reported a strong start to 2026 with Q1 EPS of $0.43 (above consensus), double-digit year-over-year EPS growth, and continued tangible book value expansion (tangible BV/share $11.84). Management reaffirmed 2026 guidance (midpoint $2.35) and provided a 2027 midpoint estimate of $2.60. Loan originations accelerated (961 units, +40% YoY; $391M vs $366M prior year) with March/April momentum and continued deposit growth (37,000 accounts; deposits grown from $142M at acquisition to ~$1.9B). Key strategic shifts: moving larger C&I long-amortizing (C&I LA) originations into the bank to fund with lower-cost core deposits (improving margins vs prior warehouse funding/securitization), continued use of securitizations for scale, and digital/AI-enabled underwriting (including a 7-day small business loan capability). Credit metrics at the bank have stabilized: delinquencies and nonperforming loans (excluding government-guaranteed loans) declined sequentially, CECL-driven allowances were built proactively as the loan book seasoned, and provisioning has covered net charge-offs. Capital ratios remain healthy (leverage >13%, CET1 >15.5%, Tier 1 >18%, total ~19.5%). Management plans controlled, diversified growth (low-double-digit loan growth target) and expects NII and margins to benefit as higher-yielding loans and lower-cost deposit funding continue to scale. They highlighted adoption of real-time payments (FedNow and RTP live) as a competitive deposit/transaction advantage.