NewtekOne, Inc.

NewtekOne said basic EPS was $0.48 and diluted EPS was $0.47 for the quarter. Barry Sloane also said asset growth was 50% while expenses rose 3.6%, and he cited bank net interest income of $25 million in Q2 2026 versus $16.2 million in Q2 2025. Frank DeMaria said pre-provision net revenue as a percentage of average assets was 4.22% this quarter versus 5.25% in Q2 2025, and that it remains above the industry average, which he said is below 2%. Management said core consumer deposits increased by $297 million in the quarter, non-affiliate deposits increased by $15 million, the loan-to-deposit ratio was about 90%, and the ACL ratio to unguaranteed loans was 5.31% or 4.14% excluding government guarantees on non-accrual loans. For forward commentary, Barry said shifting more SBA and C&I activity into the bank should increase recurring net interest income but could reduce the next couple of quarters of headline EPS and gain-on-sale revenue; he also said a future securitization out of the bank is expected to be between $300 million and $400 million. Management said guidance is being re-evaluated and should be revisited in about 45 to 60 days.

Barry Sloane emphasized that NewtekOne is intentionally transforming toward a more bank-centric model with more loans, deposits, and operating activity inside the bank. He said the goal is to grow stable net interest income, even if that means giving up some gain-on-sale income in the near term, and to eventually earn a higher valuation multiple. His tone was confident and promotional, but he also acknowledged that the shift could create some near-term EPS pressure and that the company is still crunching numbers on the new strategy.

Frank DeMaria focused on the financial bridge from balance-sheet growth to earnings quality. He said PPNR continues to grow in absolute dollars, but as a percentage of average assets it declined to 4.22% from 5.25% a year ago, still well above the industry average of below 2%. He also said about 89% of CECL reserves are tied to unguaranteed SBA 7(a) loans, with ACL coverage on that portion at about 8.56%, reflecting the higher-loss nature of that book.

Analysts focused on the implications of holding more guaranteed SBA portions and moving more lending onto the bank balance sheet, including the near-term impact on guidance and earnings. Barry said the company is shifting toward more recurring net interest income and away from some gain-on-sale revenue, and noted that this may affect the next few quarters while the long-term mix changes. Questions also covered NPLs, buybacks of problem guaranteed loans, and the Simad Holdings bankruptcy; management said guaranteed loans can be bought back with the government guarantee still in place subject to repair and denial, and Barry said he expects full recovery on the Simad loan because of operating collateral and liens outside the camps.