NEWTG Overview

Management Insights: NewtekOne's CEO, Barry R. Sloane, highlighted strong Q3 performance with significant growth in deposits and earnings, emphasizing the company's technology-driven business model and upcoming $325-$350 million ALP securitization.

Financial Performance: The company reported a basic EPS of $0.68 for Q3 2025, with a tangible book value per share increase to $11.22, and a notable decline in the efficiency ratio to 56.3%, despite a 43% rise in assets.

Outlook and Risks: Management remains cautious about Q4 guidance due to the government shutdown's potential impact on loan originations, while also focusing on diversifying the loan portfolio to mitigate risks.

Analyst Sentiment: Analysts expressed a neutral to cautious tone regarding credit quality and external risks, with a shift in focus from growth metrics to the implications of the government shutdown on future performance.

Management Insights: NewtekOne's CEO, Barry Scott Sloane, emphasized the company's focus on providing technology-driven financial solutions for independent business owners, reporting a 15% revenue growth in Q2 2025 and maintaining EPS guidance of $2.10 to $2.50 for 2024. The addition of new executives and improvements in key financial metrics were also highlighted.

Outlook and Analyst Sentiment: Management remains confident about future growth, particularly in digital banking and ALP loan originations, while analysts expressed neutral to slightly positive sentiment, seeking clarity on deposit growth and sustainability of gains amid regulatory changes.