Newtekone . 8.625% Fixed Rate Senior Notes Due 2029 Stock Earnings Reports

NewtekOne reported a strong start to 2026 with EPS of $0.43 (beat consensus by ~$0.01) and reaffirmed 2026 guidance (midpoint $2.35) while providing an early 2027 midpoint outlook of $2.60. Key operational highlights include rapid loan originations (961 units in Q1, +40% YoY; $391M in loans), continued record deposit growth (37,000 deposit accounts; deposits up materially since the 2023 bank acquisition), and significant migration of loan origination and funding into Newtek Bank (held-for-investment loans now ~83% at the bank). Management emphasized stabilized credit metrics (declining delinquencies and NPLs excluding government-guaranteed loans), a shrinking non-bank legacy portfolio, and the benefits of technology/AI (including a 7-day loan capability and FedNow/RTP live for real-time payments) driving client acquisition and conversion. C&I long-amortizing (C&I LA) loans are a strategic growth engine: larger average ticket sizes (~$4–5M), strong credit metrics, and plan to securitize larger pools (targeting $400–$500M collateral, potentially in Q4). Moving these loans on-balance-sheet at the bank should materially reduce funding costs versus warehouse lines and improve NII over time, though Q1 NIM was compressed by rapid deposit growth and high cash balances at the Fed. Capital ratios remain healthy (leverage >13%, CET1 >15.5%, Tier 1 >18%), and management reiterated that growth will be controlled and risk-managed. Investors should watch: (1) the bank-focused loan growth and upcoming securitization timing/size, (2) margin expansion as warehouse-funded loans migrate to deposit funding, (3) continued credit trends (NPLs, charge-offs, allowance), and (4) deposit retention/usage as the company deploys liquidity into earning assets.