Newtek Business Services Corp
NASDAQ:NEWT

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Newtek Business Services Corp Logo
Newtek Business Services Corp
NASDAQ:NEWT
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Price: 12.09 USD 2.28% Market Closed
Market Cap: 342.4m USD

Newtek Business Services Corp
Investor Relations

Newtek Business Services Corp. is a non-diversified closed-end management investment company. The company is headquartered in Boca Raton, Florida and currently employs 104 full-time employees. The firm's investment objective is to generate both current income and capital appreciation through loans originated by its business finance platform and its equity investments in certain portfolio companies that it controls. The company owns and controls certain portfolio companies under the Newtek brand that provides a range of business and financial solutions to small and medium-sized businesses (SMB). Its products and services include Business Lending, including the Small Business Administration (SBA), Electronic Payment Processing, Managed Technology Solutions, Data Backup, Technology Consulting, eCommerce, Accounts Receivable and Inventory Financing, personal and commercial Insurance Services, Web Services, Data Backup, Storage and Retrieval, and Payroll and Benefits Solutions to SMB accounts nationwide across all industries.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Oct 29, 2025
AI Summary
Q3 2025

Strong Profitability: NewtekOne reported robust Q3 2025 metrics, with return on assets of 3.15% and return on tangible common equity at 32%, significantly outperforming industry averages.

Deposit Growth: Core deposits grew strongly; business deposits rose $52 million (up 17% QoQ), and consumer deposits increased $95 million (up 12% QoQ), all without using branches or brokers.

Efficiency Gains: Company-wide efficiency ratio improved from 61.8% to 56.3%, while operating expenses grew just 8.5% despite a 43% increase in assets.

Alternative Loan Program Expansion: The company expects to complete its largest-ever ALP securitization ($325–350 million) in Q4 2025, a key growth area.

Credit Quality Stabilizing: Nonperforming loans remain elevated (NPLs at 8.1%), but management emphasized these are written down, and credit trends are flattening with lower provisions.

Capital Position Strengthened: Raised $80 million in Tier 1 capital and $30 million in common equity Tier 1, boosting key capital ratios to 11–15%.

Guidance Uncertain: Previous Q4 EPS guidance ($0.65–$0.80) is not reaffirmed due to the government shutdown; management says timing of gain on sale revenue is the main uncertainty.

Business Model Differentiation: Management stressed NewtekOne's tech-driven, low-cost model and its differences from traditional community banks, aiming for further growth and market share.

Key Financials
Basic EPS (Q3)
$0.68
Diluted EPS (Q3)
$0.67
EPS (First 9 months)
$1.57 (basic), $1.54 (diluted)
Tangible Book Value per Share
$11.22
Dividend
$0.19 per quarter ($0.76 annualized)
ALP Securitization (Upcoming)
$325–350 million (expected Q4 2025)
Return on Average Assets (Q3)
3.15%
Return on Tangible Common Equity (Q3)
32%
Efficiency Ratio (Holdco)
56.3%
Net Interest Margin (Q3, Bank)
5.4%
Allowance for Credit Losses
5.42%
NPLs to Total Loans
8.1%
Insured Deposits
78% of total deposits
Loan-to-Deposit Ratio
95%
Tier 1 Capital Ratio (Holdco)
12.5%
Total Risk-Based Capital Ratio (Holdco)
Just under 16%
Assets (Bank)
$1.4 billion
Assets (Holdco)
$2.4 billion
NSBF (Legacy Portfolio) Loss
$14 million (first 3 quarters 2025)
ALP Charge-offs (Historical)
$5.7 million charge-offs on $720 million of loans
Earnings Call Recording
Other Earnings Calls

Management

Mr. Barry Scott Sloane
President, Chairman & CEO
No Bio Available
Mr. Michael Scott Price
Chief Financial Officer
No Bio Available
Mr. Michael Adam Schwartz
Chief Legal Officer, Chief Compliance Officer & Secretary
No Bio Available
Mr. Nicholas J. Leger
Senior VP & Treasurer
No Bio Available
Mr. Peter Mathison Downs
Chief Lending Officer, President of Newtek Small Business Finance & Director
No Bio Available
Mr. Frank M. DeMaria
Executive VP & Chief Accounting Officer
No Bio Available
Mr. Ron Lay
Chief Technology Officer
No Bio Available
Ms. Halli Razon-Feingold
Senior VP of Human Resources, Chief Administrative Officer & Director
No Bio Available
Mr. Taylor Quinn
Senior VP & Chief Risk Officer
No Bio Available
Mr. Andrew Kaplan
Chief Strategy Officer
No Bio Available

Contacts

Address
FLORIDA
Boca Raton
4800 T Rex Avenue, Suite 120
Contacts
+12123569500.0
www.newtekone.com