NewtekOne, Inc.

The company reported Q2 2026 EPS of $0.48 basic and $0.47 diluted, and management said the quarter was within its prior range. At the bank, net interest income increased from $16.2 million in Q2 2025 to $25 million in Q2 2026. Management said asset growth was 50% while expenses increased 3.6%, book value continued to grow, and tangible book value has grown 75.3% in 12 quarters since converting to a technology-enabled financial holding company. Newtek also said non-affiliate deposits rose $15 million in the quarter, core consumer deposits climbed $297 million, and the loan-to-deposit ratio was about 90%. Forward-looking, Barry Sloane said the company is re-evaluating guidance and expects to provide updated numbers in about a 45-day window, give or take 60 days. He also said Newtek expects to do a securitization out of the bank in Q4 with a size between $300 million and $400 million, and that the shift toward more balance-sheet lending and more SBA Express lending could affect near-term results.

Barry Sloane framed NewtekOne as a technology-enabled lender serving independent business owners, emphasizing that the company is moving more activity into the bank because it can create more stable recurring income and better use of the balance sheet. He repeatedly highlighted the company’s differentiated model, including digital account opening, NewTracker, Newtek Advantage, real-time payments, and AI-assisted data processing, while arguing that the market does not fully value that platform. His tone was confident and defensive at times, especially on the strategy shift, but he said the company is being methodical and wants to do what is best for customers and shareholders.

Frank DeMaria focused on the financial mix shift and reserve profile. He said pre-provision net revenue continues to grow in absolute dollars, though as a percentage of average assets it declined year over year from 5.25% to 4.22%, still well above the industry average of below 2%. He also said about 89% of the allowance for credit losses is directed at unguaranteed SBA 7(a) loans, and the ACL coverage ratio on that portfolio was about 8.56% of that portion of the loan book. On the other income question, he said the increase was driven mainly by loan paydowns in the securitizations and expects that line to normalize.

Analysts focused on the decision to hold more SBA-guaranteed loans on balance sheet, and management said that will likely reduce near-term gain-on-sale income but should add more stable net interest income over time. They also asked about guaranteed NPLs and buybacks, and Barry explained that when SBA 7(a) loans go bad, Newtek has been more aggressive in buying them back rather than having the government do so, while still keeping the guarantee in place subject to repair and denial reserves. Questions also centered on the Simad Holdings bankruptcy, where Barry said the $15 million loan is in a securitization, is supported by multiple camps and other collateral, and he expects full recovery. In response to questions about the technology platform, management said there are opportunities in the pipeline with other institutions, but adoption will be slow because banks move slowly.