NewtekOne Files for $650M Mixed Securities Shelf Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Securities Filing: NewtekOne filed on Thursday for a mixed securities shelf offering of up to $650 million, indicating the company's focus on maintaining financial flexibility by utilizing net proceeds for general corporate purposes.
- Market Reaction: Following the filing announcement, NewtekOne's shares fell 2.4% in after-hours trading, reflecting market concerns regarding its financial health, which could impact investor confidence moving forward.
- Earnings Outlook: NewtekOne outlined a midpoint EPS of $2.60 for 2027 while reaffirming a midpoint of $2.35 for 2026, demonstrating confidence in future profitability but also highlighting ongoing issues with earnings quality.
- Automation Initiative: NewtekOne is advancing the automation of insurance integration with loan origination, aiming to enhance operational efficiency and improve customer experience, thereby strengthening its competitive position in a challenging market.
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Analyst Views on NEWT
Wall Street analysts forecast NEWT stock price to rise
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 14.120
Low
12.50
Averages
14.50
High
18.00
Current: 14.120
Low
12.50
Averages
14.50
High
18.00
About NEWT
NewtekOne, Inc. is a financial holding company, which, along with its bank and non-bank consolidated subsidiaries, provides a range of business and financial solutions under the Newtek brand to independent business owners. The Company’s segments include Banking, Alternative Lending, NSBF and Payments. Its business and financial solutions include Banking (Newtek Bank, N.A.), Business Lending, SBA Lending Solutions, Electronic Payment Processing, Accounts Receivable Financing and Inventory Financing, Insurance Solutions and Payroll and Benefits Solutions. In addition, the Company offers its clients the Technology Solutions (Cloud Computing, Data Backup, Storage and Retrieval, IT Consulting and Web Services) provided by Intelligent Protection Management Corp. (IPM.com). The Company’s lending solutions include term loans and revolving lines of credit. The Company’s insurance solutions include commercial insurance, personal insurance, employee benefits and life insurance.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
NewtekOne Files for $650M Mixed Securities Shelf Offering
- Securities Filing: NewtekOne filed on Thursday for a mixed securities shelf offering of up to $650 million, indicating the company's focus on maintaining financial flexibility by utilizing net proceeds for general corporate purposes.
- Market Reaction: Following the filing announcement, NewtekOne's shares fell 2.4% in after-hours trading, reflecting market concerns regarding its financial health, which could impact investor confidence moving forward.
- Earnings Outlook: NewtekOne outlined a midpoint EPS of $2.60 for 2027 while reaffirming a midpoint of $2.35 for 2026, demonstrating confidence in future profitability but also highlighting ongoing issues with earnings quality.
- Automation Initiative: NewtekOne is advancing the automation of insurance integration with loan origination, aiming to enhance operational efficiency and improve customer experience, thereby strengthening its competitive position in a challenging market.
See More
NewtekOne Launches Automated Insurance Integration in Loan System
- Automated Insurance Integration: NewtekOne has integrated insurance products into its loan origination system, allowing borrowers to instantly access lender-compliant insurance quotes, thereby expediting the loan closing process and enhancing customer experience.
- Enhanced Compliance: By embedding insurance automation into its patented NewTracker operating system, NewtekOne not only meets regulatory requirements but also ensures that the loan closing process is uninterrupted by the search for necessary insurance, further optimizing operational efficiency.
- Diverse Insurance Offerings: Borrowers are automatically offered key person life insurance policies of up to $3 million, flood insurance where applicable, and property & casualty insurance during the application process, increasing product appeal and market competitiveness.
- Stock Price Fluctuation: Despite the new system launch, NewtekOne's stock slipped 0.8% in premarket trading, reflecting market concerns over the company's earnings quality, even as it reaffirmed a midpoint EPS forecast of $2.35 for 2026 and $2.60 for 2027.
See More
NewtekOne Declares Quarterly Cash Dividend
- Quarterly Cash Dividend: NewtekOne has announced a quarterly cash dividend of $0.19 per share, payable on July 1, 2026, reflecting the company's commitment to shareholder returns and bolstering investor confidence.
- Preferred Stock Dividend: The company also declared a dividend of $21.25 per share on its 8.500% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, or $0.53125 per depositary share, indicating a strong focus on rewarding preferred shareholders.
- Record Date for Shareholders: The record date for both the cash and preferred stock dividends is set for June 24, 2026, ensuring that eligible shareholders receive their dividends promptly, which may enhance shareholder loyalty.
- Business Context: Since 1999, NewtekOne has provided a wide range of financial solutions to independent business owners, and this dividend policy reflects the company's ongoing profitability and commitment to shareholders, further solidifying its market position.
See More
NewtekOne Declares Quarterly Dividend of $0.19 per Share
- Quarterly Dividend Announcement: NewtekOne has declared a quarterly dividend of $0.19 per share, consistent with previous distributions, demonstrating the company's ongoing ability to maintain stable cash flow, which is likely to attract income-seeking investors.
- Dividend Yield: The forward yield of 5.55% reflects the company's appeal in the current market environment, potentially increasing investor interest in its stock and enhancing price performance.
- Shareholder Record Dates: The dividend will be payable on July 1, with a record date of June 24 and an ex-dividend date also on June 24, providing investors with a clear timeline for making investment decisions.
- Future Earnings Guidance: NewtekOne reaffirms a midpoint EPS of $2.35 for 2026 and projects a midpoint of $2.60 for 2027, indicating confidence in future profitability, which may further bolster market sentiment towards its stock.
See More
NewtekOne Forms Strategic Alliance with Payroc to Enhance Merchant Solutions
- Strategic Partnership: NewtekOne has formed a strategic alliance with Payroc, integrating its business and financial solutions into Payroc's offerings for over 190,000 active merchants, which is expected to significantly enhance the financial service capabilities of these merchants.
- Financing Solutions: Payroc's merchants will have access to loans ranging from $5,000 to $15 million with amortization periods of 10 to 25 years, designed to meet diverse financing needs and strengthen their competitive position in the market.
- Real-Time Payroll Functionality: The new alliance will provide real-time payroll capabilities for merchants on the Payroc platform, enabling same-day payroll execution, which will greatly improve operational efficiency and employee satisfaction for these businesses.
- Transparency and Customer Service: Through the NewTracker® processing system, NewtekOne will offer Payroc's management team transparent tracking of customer service from application to closure, ensuring that merchants receive high-quality service at every stage, thereby further solidifying the partnership.
See More
NewtekOne Appoints Chief Real-Time Payments Officer
- Executive Appointment: NewtekOne has appointed Fuad Capric as the new Chief Real-Time Payments Officer, tasked with integrating the bank's new real-time payment functionality to enhance payment efficiency for commercial clients, thereby strengthening market competitiveness.
- Payment Transformation Experience: Capric's tenure at Flagstar Bank N.A. involved managing a team of over 80 professionals and overseeing an annual transaction volume exceeding $275 billion, including $250 billion in wire transfers and $20 billion in ACH transactions, showcasing his extensive background in payment strategy and operations.
- New Business Model: Newtek Bank has rebranded its electronic payment processing subsidiary as “Newtek Real-Time Payment Solutions” to meet businesses' demands for instant payment capabilities, aiming to enhance customer experience and satisfaction by simplifying payment processes.
- Integrated Financial Solutions: The Newtek Advantage® offers a zero-fee business banking account combined with real-time analytics tools, helping clients better manage finances and improve liquidity, demonstrating NewtekOne's unique advantages in the small business financial services sector.
See More
NewtekOne Files for $650M Mixed Securities Shelf Offering
- Securities Filing: NewtekOne filed on Thursday for a mixed securities shelf offering of up to $650 million, indicating the company's focus on maintaining financial flexibility by utilizing net proceeds for general corporate purposes.
- Market Reaction: Following the filing announcement, NewtekOne's shares fell 2.4% in after-hours trading, reflecting market concerns regarding its financial health, which could impact investor confidence moving forward.
- Earnings Outlook: NewtekOne outlined a midpoint EPS of $2.60 for 2027 while reaffirming a midpoint of $2.35 for 2026, demonstrating confidence in future profitability but also highlighting ongoing issues with earnings quality.
- Automation Initiative: NewtekOne is advancing the automation of insurance integration with loan origination, aiming to enhance operational efficiency and improve customer experience, thereby strengthening its competitive position in a challenging market.
See More
NewtekOne Launches Automated Insurance Integration in Loan System
- Automated Insurance Integration: NewtekOne has integrated insurance products into its loan origination system, allowing borrowers to instantly access lender-compliant insurance quotes, thereby expediting the loan closing process and enhancing customer experience.
- Enhanced Compliance: By embedding insurance automation into its patented NewTracker operating system, NewtekOne not only meets regulatory requirements but also ensures that the loan closing process is uninterrupted by the search for necessary insurance, further optimizing operational efficiency.
- Diverse Insurance Offerings: Borrowers are automatically offered key person life insurance policies of up to $3 million, flood insurance where applicable, and property & casualty insurance during the application process, increasing product appeal and market competitiveness.
- Stock Price Fluctuation: Despite the new system launch, NewtekOne's stock slipped 0.8% in premarket trading, reflecting market concerns over the company's earnings quality, even as it reaffirmed a midpoint EPS forecast of $2.35 for 2026 and $2.60 for 2027.
See More
NewtekOne Declares Quarterly Cash Dividend
- Quarterly Cash Dividend: NewtekOne has announced a quarterly cash dividend of $0.19 per share, payable on July 1, 2026, reflecting the company's commitment to shareholder returns and bolstering investor confidence.
- Preferred Stock Dividend: The company also declared a dividend of $21.25 per share on its 8.500% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, or $0.53125 per depositary share, indicating a strong focus on rewarding preferred shareholders.
- Record Date for Shareholders: The record date for both the cash and preferred stock dividends is set for June 24, 2026, ensuring that eligible shareholders receive their dividends promptly, which may enhance shareholder loyalty.
- Business Context: Since 1999, NewtekOne has provided a wide range of financial solutions to independent business owners, and this dividend policy reflects the company's ongoing profitability and commitment to shareholders, further solidifying its market position.
See More
NewtekOne Declares Quarterly Dividend of $0.19 per Share
- Quarterly Dividend Announcement: NewtekOne has declared a quarterly dividend of $0.19 per share, consistent with previous distributions, demonstrating the company's ongoing ability to maintain stable cash flow, which is likely to attract income-seeking investors.
- Dividend Yield: The forward yield of 5.55% reflects the company's appeal in the current market environment, potentially increasing investor interest in its stock and enhancing price performance.
- Shareholder Record Dates: The dividend will be payable on July 1, with a record date of June 24 and an ex-dividend date also on June 24, providing investors with a clear timeline for making investment decisions.
- Future Earnings Guidance: NewtekOne reaffirms a midpoint EPS of $2.35 for 2026 and projects a midpoint of $2.60 for 2027, indicating confidence in future profitability, which may further bolster market sentiment towards its stock.
See More
NewtekOne Forms Strategic Alliance with Payroc to Enhance Merchant Solutions
- Strategic Partnership: NewtekOne has formed a strategic alliance with Payroc, integrating its business and financial solutions into Payroc's offerings for over 190,000 active merchants, which is expected to significantly enhance the financial service capabilities of these merchants.
- Financing Solutions: Payroc's merchants will have access to loans ranging from $5,000 to $15 million with amortization periods of 10 to 25 years, designed to meet diverse financing needs and strengthen their competitive position in the market.
- Real-Time Payroll Functionality: The new alliance will provide real-time payroll capabilities for merchants on the Payroc platform, enabling same-day payroll execution, which will greatly improve operational efficiency and employee satisfaction for these businesses.
- Transparency and Customer Service: Through the NewTracker® processing system, NewtekOne will offer Payroc's management team transparent tracking of customer service from application to closure, ensuring that merchants receive high-quality service at every stage, thereby further solidifying the partnership.
See More
NewtekOne Appoints Chief Real-Time Payments Officer
- Executive Appointment: NewtekOne has appointed Fuad Capric as the new Chief Real-Time Payments Officer, tasked with integrating the bank's new real-time payment functionality to enhance payment efficiency for commercial clients, thereby strengthening market competitiveness.
- Payment Transformation Experience: Capric's tenure at Flagstar Bank N.A. involved managing a team of over 80 professionals and overseeing an annual transaction volume exceeding $275 billion, including $250 billion in wire transfers and $20 billion in ACH transactions, showcasing his extensive background in payment strategy and operations.
- New Business Model: Newtek Bank has rebranded its electronic payment processing subsidiary as “Newtek Real-Time Payment Solutions” to meet businesses' demands for instant payment capabilities, aiming to enhance customer experience and satisfaction by simplifying payment processes.
- Integrated Financial Solutions: The Newtek Advantage® offers a zero-fee business banking account combined with real-time analytics tools, helping clients better manage finances and improve liquidity, demonstrating NewtekOne's unique advantages in the small business financial services sector.
See More
