NewtekOne, Inc. Depositary Shares, Non-Cumulative Perpetual Preferred Stock, Series B

NewtekOne said diluted EPS was $0.47 and basic EPS was $0.48 for the quarter. On the bank side, net interest income increased to $25 million in Q2 2026 from $16.2 million in Q2 2025. PPNR as a percentage of average assets was 4.22% this quarter versus 5.25% in Q2 2025, and management said expenses were up 3.6% while asset growth was 50%. Deposits remained a key strength, with non-affiliate deposits up $15 million and core consumer deposits up $297 million in the quarter; the loan-to-deposit ratio was about 90%. Forward-looking, management said more SBA guaranteed loans will be held on balance sheet, which should shift mix toward net interest income and away from gain-on-sale revenue over the next couple of quarters. They also said they will do another securitization out of the bank, likely sized between $300 million and $400 million, and that the company is re-evaluating guidance with a 45- to 60-day window for updated visibility.

Barry Sloane framed NewtekOne as a technology-enabled lender and bank serving independent business owners, emphasizing that the company is moving more activity into the bank to create a more stable, recurring earnings base. He repeatedly argued that the model is differentiated, saying there is effectively no true comp and that the market does not fully value the platform, technology, or customer service capabilities. His tone was confident and promotional, but he acknowledged the transition could reduce near-term headline EPS while improving the long-term income mix.

Frank DeMaria highlighted that pre-provision net revenue continues to grow in absolute dollars with balance sheet growth, though PPNR as a percent of average assets declined to 4.22% from 5.25% a year ago. He said about 89% of the allowance for credit losses is directed to unguaranteed SBA 7(a) loans and that ACL coverage on that portion was about 8.56%, reflecting the higher-loss profile of those loans. He also explained that the other income increase was driven by securitization paydowns and payoffs and said that line should normalize in future quarters.

Analysts focused on the shift toward holding more SBA guaranteed loans on balance sheet and asked how it affects near-term guidance, to which management said it should lower near-term gain-on-sale revenue but increase stable net interest income over time. Questions also centered on guaranteed NPLs and buybacks; Sloane explained that bought-back SBA loans still carry the government guarantee subject to repair and denial, and said Newtek is becoming more aggressive in repurchases to support the SBA relationship. Another area of interest was Newtek’s technology platform, where management said it already has opportunities in the pipeline with other institutions that may want to white-label NewTracker or Newtek Advantage.