Q3 2025 NewtekOne Inc Earnings Call Transcript
Key Points
- NewtekOne Inc (NEWT) reported strong financial performance with a significant increase in return on average assets and return on tangible common equity.
- The company successfully raised core deposits without the use of traditional branches, bankers, or brokers, showcasing its efficient deposit-gathering strategy.
- NewtekOne Inc (NEWT) is planning its largest Alternative Loan Program (ALP) securitization to date, indicating strong growth and profitability potential.
- The company has demonstrated robust growth in tangible book value per share, increasing from $6.92 to $11.22 while maintaining a healthy dividend payout.
- NewtekOne Inc (NEWT) has diversified its loan portfolio, reducing reliance on SBA 7(a) loans and expanding into CRE and C&I lending, which is expected to stabilize and enhance future growth.
- The company faces challenges with high non-performing loans (NPLs) at 8.1%, although these have been written down, indicating ongoing credit risk management issues.
- The government shutdown poses uncertainty for NewtekOne Inc (NEWT)'s SBA 7(a) loan originations, potentially impacting short-term financial performance.
- The company's guidance for Q4 earnings is uncertain due to the government shutdown, affecting investor confidence.
- NewtekOne Inc (NEWT) is experiencing a tougher market environment for loan originations due to changes in SBA regulations and economic conditions.
- The legacy nonbank lender NSBF is in wind-down mode, contributing to ongoing losses, although these are expected to decline over time.
Good day and thank you for standing by. Welcome to the NewtekOne Inc third-quarter 2025 earnings conference call. (Operator Instructions) 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, President and Chief Executive Officer. Please go ahead.
Thank you, operator, and welcome participants to our Q3 2025 financial results conference call. I'm Barry Sloane, President, Founder and CEO of NewtekOne and Newtek Bank National Association. Joining me on today's call is Frank DeMaria, Chief Financial Officer of NewtekOne, the publicly traded holding company, stock symbol NEWT on the NASDAQ; and Scott Price, our Chief Financial Officer of Newtek Bank National Association.
We certainly appreciate everybody attending the call today and the investment that you've made in analyzing and evaluating Newtek as an investment opportunity. We'd like everybody to try to focus
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