Q3 2024 NewtekOne Inc Earnings Call Transcript
Key Points
- NewtekOne Inc (NEWT) reported earnings per share of 45¢ for the quarter, exceeding the street consensus of 43¢.
- The company achieved a return on average assets of 2.8%, which is almost three times the peer median.
- NewtekOne Inc (NEWT) experienced significant deposit growth of 12% and loan growth of 17% at the bank.
- The net interest margin at the bank was reported at 5.29%, indicating strong profitability.
- The company completed a registered public offering of $75 million in bonds, enhancing its financial flexibility.
- The provision for loan losses was higher than expected, with NewtekOne Inc (NEWT) booking $6.9 million.
- There is a noted discomfort in the market with NewtekOne Inc (NEWT)'s unconventional metrics and business model.
- The company faces challenges in getting industry participants comfortable with its risk-adjusted returns.
- Non-accrual loans at the bank increased, which could be a concern for investors.
- The allowance for credit losses remains high, influenced by the concentration of seven A loans on the balance sheet.
Good day. And thank you for standing by. Welcome to the New Tech One Inc third quarter, 2024 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session to ask a question during the session. You will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised to withdraw your question. Please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Barry Sloane CEO and President. Please go ahead.
Thanks very much Gerald and Good morning and welcome to our third quarter, 2024 financial results conference call. Today's call is hosted by myself, Barry Sloan CEO and founder of New Tech One and Scott Price, the Chief Financial Officer of New Tech One and New Tech Bank National Association. Also joining on the call is Nicholas Young
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