NewtekOne Reports Strong 2025 Financials with Significant Asset & Deposit Growth, Strategic Capital Raises, and Effective Internal Controls

summarizeSummary

NewtekOne reported a significant increase in net income and EPS for 2025, driven by strong asset and deposit growth, alongside active capital management and the successful divestiture of its NTS segment. The company also confirmed effective internal controls, though an increase in non-performing loans and potential dilution from an expanded ATM program warrant attention.

check_boxKey Events

• Strong Financial Performance in 2025

  Net income increased to $60.5 million ($2.21 basic EPS) in 2025 from $50.9 million ($1.97 basic EPS) in 2024. Total assets grew by 33.2% to $2.7 billion, and total deposits increased by $444.4 million to $1.4 billion.

• Strategic Capital Raising and Debt Management

  The company issued $48.357 million in net proceeds from Series B Preferred Stock and $52.0 million in 2030 Notes (including an exchange of $20.0 million from 2026 Notes). Post-period, it completed a $341.8 million securitization of ALP loans and issued $15.0 million in 2033 Notes.

• Expanded ATM Program and Share Repurchases

  The At-The-Market (ATM) Equity Distribution Agreement was amended to allow the sale of up to 5.0 million common shares (up from 3.0 million), representing significant potential dilution. The company also repurchased 143 shares for $1.487 million under its stock repurchase program and 2,700 shares of 2029 Notes under a debt repurchase program.

• Increase in Non-Performing Loans

  Non-performing assets as a percentage of total assets increased from 4.6% in 2024 to 5.8% in 2025, and the provision for credit losses rose to $38.7 million from $26.2 million.

auto_awesomeAnalysis

NewtekOne's 2025 annual report highlights robust financial performance, marked by substantial growth in net income, EPS, and total assets. The company successfully expanded its deposit base and executed several capital-raising initiatives, including a preferred stock offering and new debt issuances, while also managing its equity through an increased ATM program and share repurchases. A key positive is the remediation of prior material weaknesses in internal controls. However, investors should note the increase in non-performing loans and the potential dilution from the expanded ATM program, which represent areas for continued monitoring. The strategic divestiture of its technology segment (NTS) is also a notable operational shift.