$NEWT

NewtekOne, Inc.

CIK:0001587987|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income
Debt securities available-for-sale	$ 217	$ 214	$ 433	$ 490
Loans and fees on loans	40,335	33,354	78,037	67,837
Other interest earning assets	5,742	2,950	14,065	6,081
Total interest income	46,294	36,518	92,535	74,408
Interest expense
Deposits	18,599	9,357	33,869	19,202
Total interest expense	31,330	22,595	60,345	46,552
Net interest income	14,964	13,923	32,190	27,856
Provision for credit losses	12,114	9,117	21,722	22,622
Net interest income after provision for credit losses	2,850	4,806	10,468	5,234
Noninterest income
Dividend income	485	600	935	2,286
Net loss on loan servicing assets	(5,249)	(4,355)	(11,446)	(8,007)
Servicing income	5,003	6,054	11,388	11,579
Net gains on sales of loans	11,226	15,526	37,908	28,487
Net gain on residuals in securitizations	2,006	31,465	58,150	31,465
Net (loss) gain on loans under the fair value option	20,654	(11,761)	(28,924)	6,316
Electronic payment processing income	10,852	11,739	21,256	22,348
Other noninterest income	15,140	7,007	24,581	14,199
Total noninterest income	60,117	56,275	113,848	108,673
Noninterest expense
Salaries and employee benefits expense	23,234	23,135	46,330	44,451
Electronic payment processing expense	4,719	4,428	8,840	8,875
Professional services expense	3,181	4,304	5,784	7,739
Other loan origination and maintenance expense	4,909	3,287	11,136	7,704
Technology expense	2,921	2,996	5,874	5,724
Other general and administrative costs	4,853	4,159	10,116	8,993
Total noninterest expense	43,817	42,309	88,080	83,486
Net income before taxes	19,150	18,772	36,236	30,421
Income tax expense	4,539	5,069	8,224	7,351
Net income	14,611	13,703	28,012	23,070
Dividends to preferred shareholders	(1,063)	(400)	(2,126)	(800)
Net income available to common shareholders	$ 13,548	$ 13,303	$ 25,886	$ 22,270
Earnings per Common Share:
Basic (in dollars per share)	$ 0.48	$ 0.53	$ 0.91	$ 0.89
Diluted (in dollars per share)	$ 0.47	$ 0.52	$ 0.90	$ 0.87
Notes and securitizations
Interest expense
Interest expense	$ 8,846	$ 10,908	$ 18,248	$ 21,882
Bank and FHLB borrowings
Interest expense
Interest expense	$ 3,885	$ 2,330	$ 8,228	$ 5,468

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 28,012	$ 23,070
Adjustments to reconcile net income to net cash used in operating activities:
Net unrealized depreciation on joint ventures and other investments	1,970	96
Net loss (gain) on loans accounted for under the fair value option	28,924	(6,316)
Net gain on residuals in securitizations	(58,150)	(31,465)
Net loss on loan servicing assets	11,446	8,007
Net unrealized depreciation on warrants and derivative transactions	828	1,468
Net gain on sales of loans	(37,908)	(28,487)
Net accretion of premium/discount on debt securities available-for-sale and loans	(264)	(1,051)
Amortization of deferred financing costs and deferred loan fees and costs	1,183	2,096
Provision for credit losses	21,722	22,622
Lower of cost or market adjustment on loans held for sale	0	(15)
Bad debt expense, net of recoveries	(227)	85
Stock compensation expense	1,159	3,390
Deferred income benefit expense	(21,496)	(2,439)
Depreciation and amortization	291	420
Proceeds from sale of loans held for sale	232,055	217,267
Purchase of loans held for sale	(22,179)	0
Funding of loans held for sale	(574,293)	(508,393)
Principal received on loans held for sale	10,842	5,608
Other, net	(539)	(1,244)
Changes in operating assets and liabilities:
Settlement receivable	438	32,759
Other assets	(11,858)	(1,351)
Due to participants	(31,272)	4,354
Accounts payable, accrued expenses and other liabilities	(1,454)	(999)
Net cash used in operating activities	(420,770)	(260,518)
Cash flows from investing activities:
Principal received on loans held for investment, at fair value	28,400	35,063
Repurchases of loans held for investment, at fair value	(2,987)	(1,071)
Net increase in loans held for investment, at cost	(254,111)	(171,609)
Proceeds from sales of Biller Genie and Newtek Technology Solutions, Inc.	1,983	4,000
Contributions to joint ventures and other investments	0	(85)
Return of capital from joint ventures and other investments	0	14
Purchase of fixed assets	(58)	(91)
Sales of Federal Home Loan Bank and Federal Reserve Bank stock	48	315
Purchases of Federal Home Loan Bank and Federal Reserve Bank stock	(361)	(667)
Purchases of available-for-sale securities	(17,015)	(3,945)
Maturities of available-for-sale securities	19,000	14,000
Net cash used in investing activities	(225,101)	(124,076)
Cash flows from financing activities:
Borrowing on bank notes payable	39,852	187,350
Repayment on bank notes payable	(211,394)	(202,638)
Net increase in deposits	731,751	110,248
Repayment of Federal Home Loan Bank advances	(1,038)	(7,004)
Repurchase of common shares under share repurchase plan	0	(167)
Payments on Notes Payable - Securitization Trusts	(22,255)	(29,596)
Proceeds related to residuals in securitizations	279,379	169,421
Dividends paid, net of dividend reinvestment plan	(12,958)	(10,468)
Payments of deferred financing costs	(218)	(724)
Proceeds from common stock issued under ESPP, net of discount, and restricted stock awards, net of forfeitures	173	157
Purchase of vested stock for employee payroll tax withholding	(582)	(70)
Net cash provided by financing activities	730,587	216,509
Net increase (decrease) in cash and restricted cash	84,716	(168,085)
Cash and restricted cash—beginning of period (NOTE 2)	310,291	381,374
Cash and restricted cash—end of period (NOTE 2)	395,007	213,289
Non-cash operating, investing and financing activities:
Foreclosed real estate acquired	5,250	3,994
Reclass of loans from HFS to HFI	442,613	0
Dividends declared but not paid during the period	0	5,246
Supplemental disclosure of cash flow information:
Interest paid	60,946	46,237
Income taxes paid	14,969	927
Stock Acquired
Non-cash operating, investing and financing activities:
IPM	0	8,200
Earn Out Receivable
Non-cash operating, investing and financing activities:
IPM	0	2,268
2033 8.375% Notes
Cash flows from financing activities:
Proceeds from Notes	15,000	0
2026 Notes
Cash flows from financing activities:
Redemption of Notes	(87,123)	0
2025 5.00% Notes
Cash flows from financing activities:
Redemption of Notes	0	(30,000)
2023 Notes
Cash flows from financing activities:
Proceeds from Notes	$ 0	$ 30,000

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and due from banks	$ 5,190	$ 4,196
Restricted cash (amounts related to VIEs of $6.3 million and $6.3 million, respectively)	22,744	26,477
Interest bearing deposits in banks	367,073	279,618
Total cash and cash equivalents	395,007	310,291
Debt securities available-for-sale, at fair value	15,139	16,829
Loans held for sale, at fair value	500,783	971,837
Loans held for sale, at LCM	20,473	26,532
Loans held for investment, at fair value	721,568	281,198
Loans held for investment, at amortized cost, net of deferred fees and costs	1,139,537	896,689
Allowance for credit losses	(52,715)	(45,226)
Loans held for investment, at amortized cost, net	1,086,822	851,463
Federal Home Loan Bank and Federal Reserve Bank stock	4,548	4,234
Settlement receivable	0	438
Residuals in securitizations, at fair value	204,001	76,701
Goodwill and intangibles	14,526	14,597
Right of use assets	2,574	2,790
Deferred tax asset, net	10,768	0
Servicing assets, at fair value	12,456	15,358
Servicing assets, at LCM	39,500	29,564
Other assets	112,950	95,268
Total assets	3,184,881	2,744,819
Deposits:
Noninterest-bearing	56,270	53,873
Interest-bearing	2,094,232	1,364,535
Total deposits	2,150,502	1,418,408
Borrowings (including borrowings of VIEs of $105.1 million and $127.1 million, respectively)	554,192	819,888
Lease liabilities	2,648	2,874
Deferred tax liabilities, net	0	10,728
Due to participants	21,117	52,389
Accounts payable, accrued expenses and other liabilities	43,049	42,962
Total liabilities	2,771,508	2,347,249
Commitment and contingencies (Note 13)
Shareholders' Equity:
Common stock (par value $0.02 per share; 199,946 authorized, 28,899 and 28,658 issued and outstanding, respectively)	579	573
Retained earnings	109,899	94,990
Additional paid-in capital	254,719	253,830
Accumulated other comprehensive loss, net of income taxes	(5)	(4)
Total shareholders' equity	413,373	397,570
Total liabilities and shareholders' equity	3,184,881	2,744,819
Joint Ventures and Other Investments
ASSETS
Investments	43,766	47,719
Series B Preferred stock
Shareholders' Equity:
Preferred stock	$ 48,181	$ 48,181