On March 5, 2024, NewtekOne Inc (NEWT, Financial) released its 8-K filing, detailing the financial and operating results for the fourth quarter and the full year ended December 31, 2023. As a financial holding company, NewtekOne has successfully navigated the complexities of the banking sector, leveraging its patented NewTracker® system and the Newtek Advantage® platform to drive growth and efficiency.
Company Overview
NewtekOne Inc is a financial holding company that offers a comprehensive suite of business and financial solutions to small and medium-sized businesses across the United States. With a focus on technology and innovation, NewtekOne has established a unique position in the market, providing clients with a single online dashboard to manage a variety of services, including banking, lending, payments, and insurance.
Financial Performance and Challenges
The company reported a net income of $43.0 million for the full year 2023, with basic and diluted earnings per share (EPS) of $1.71 and $1.70, respectively. This performance aligns with the previously issued guidance and demonstrates the company's ability to achieve controlled growth despite the broader challenges faced by the banking sector. NewtekOne's non-interest-bearing revenue model has proven to be a valuable asset in the current economic environment.
Key Financial Metrics
Key financial metrics such as return on average assets (ROAA) and return on tangible common equity (ROTCE) stood at 3.2% and 22.7%, respectively, for the full year 2023. These metrics are indicative of the company's profitability and capital efficiency. The efficiency ratio, a measure of the company's operational efficiency, improved to 61.2% for the fourth quarter of 2023, down from 63.8% in the previous quarter.
Commentary from Management
"We are pleased to report our first full year as a financial holding company owning Newtek Bank, a nationally chartered bank. We achieved basic earnings per share (EPS) of $1.71 and diluted EPS of $1.70, in line with our previously issued annual earnings guidance of $1.60 to $1.80 per basic and diluted common share. For 2024, we are currently forecasting annual EPS in a range of $1.80 to $2.00 per basic and diluted common share, which would represent an approximate 11% increase from 2023 EPS to the midpoint of the 2024 forecasted range." - Barry Sloane, CEO, President, and Chairman
Looking Ahead
NewtekOne is forecasting EPS for the full year 2024 to be in the range of $1.80 to $2.00 per basic and diluted common share, representing a 13.1% increase from the full year 2023 EPS of $1.70 at the midpoint of the forecasted range. The company's strategic focus on technology and a diversified income stream positions it well for continued growth and resilience in the dynamic banking industry.
For a detailed analysis of NewtekOne Inc's financial results and future outlook, investors and interested parties are encouraged to review the full 8-K filing and join the upcoming conference call.
Explore the complete 8-K earnings release (here) from NewtekOne Inc for further details.
