Newtek Business Services 6.25 % Notes 2018-01.03.23 Stock Earnings Reports

NewtekOne reported a strong start to 2026 with Q1 EPS of $0.43 (beating consensus by ~$0.01) and double-digit year-over-year EPS growth. Key operational highlights include a 40% increase in loan units originated (961 units; $391M total), continued rapid deposit growth (37,000 deposit accounts, deposits up materially since the 2023 bank acquisition), and expanded adoption of real-time payments (FedNow and The Clearing House RTP live). Management emphasized continued technology-driven scale (AI-enabled underwriting and a 7-day funding capability for loans under $350K) and the move of larger C&I long-amortization (C&I LA) originations into the bank, which improves funding economics versus prior warehouse financing and supports higher future NII and margins. The company reaffirmed 2026 guidance (midpoint $2.35) and provided a 2027 midpoint estimate ($2.60). Credit metrics at the bank have stabilized: delinquencies and nonperforming loans (excluding government-guaranteed loans) declined, provisions cover charge-offs, and CECL allowance was built as the portfolio seasoned. Capital ratios remain healthy (leverage >13%, CET1 >15.5%, total capital ~19.5%). Management expects continued controlled, diversified loan growth (low double-digit), potential fourth-quarter securitization target size $400M–$500M of collateral, and continued operating leverage as bank funding displaces higher-cost warehouse financing.