0001628280-26-016503
SEC filingNewtekOne, Inc. reported net income of $60.5 million for fiscal year 2025, with net income available to common shareholders of $58.2 million. The company generated total interest income of $158.4 million and total noninterest income of $224.9 million, resulting in net interest income of $59.9 million after total interest expense of $98.5 million. Key profit drivers included net gains on sales of loans ($47.6 million), net gain on residuals in securitizations ($30.0 million), and net gain on loans under the fair value option ($61.2 million). The company ended the year with total assets of $2.74 billion, total liabilities of $2.35 billion, and shareholders' equity of $397.6 million. Cash flow from operations was negative $579.2 million, primarily due to funding of loans held for sale ($1.06 billion), while financing activities provided $753.5 million through increased deposits and borrowings.
NewtekOne, Inc. reported fiscal year 2025 net income of $60.5 million, with net income available to common shareholders of $58.2 million after preferred dividends of $2.3 million. The company generated total revenue from interest and noninterest sources of $383.3 million ($158.4M interest income + $224.9M noninterest income). Net interest income was $59.9 million after provision for credit losses of $38.7 million. Noninterest income of $224.9 million was driven by net gains on sales of loans ($47.6M), net gain on residuals in securitizations ($30.0M), net gain on loans under the fair value option ($61.2M), and electronic payment processing income ($43.8M). Noninterest expenses totaled $166.1 million, with salaries and employee benefits being the largest component at $84.8 million.
The company's revenue streams are diversified between interest income ($158.4M) and noninterest income ($224.9M). Interest income was primarily generated from loans and fees on loans ($146.3M), with smaller contributions from other interest earning assets ($11.2M) and debt securities available-for-sale ($0.9M). Noninterest income was dominated by gains from loan-related activities including net gains on sales of loans ($47.6M), net gain on residuals in securitizations ($30.0M), and net gain on loans under the fair value option ($61.2M). Electronic payment processing contributed $43.8 million, while servicing income added $22.9 million. The company reported dividend income of $3.2 million and other noninterest income of $33.0 million.
The company's net interest margin cannot be calculated from the provided data as average earning assets are not disclosed. Operating margin based on net income before taxes of $80.0 million relative to total revenue of $383.3 million would be approximately 20.9%. The provision for credit losses of $38.7 million represented a significant expense, reducing net interest income from $59.9 million to $21.2 million after provision. Noninterest expenses of $166.1 million included salaries and employee benefits ($84.8M), electronic payment processing expense ($17.8M), professional services ($15.5M), other loan origination and maintenance expense ($18.6M), and other general and administrative costs ($28.6M).
Cash flow from operating activities was negative $579.2 million, primarily due to funding of loans held for sale ($1.06B) exceeding proceeds from sale of loans held for sale ($404.5M). Investing activities used $245.3 million, mainly from net increase in loans held for investment at cost ($313.3M). Financing activities provided $753.5 million through net increase in deposits ($444.4M), borrowing on bank notes payable ($531.2M), and proceeds from preferred stock ($48.2M). The balance sheet shows total assets of $2.74 billion, including loans held for sale ($998.3M), loans held for investment ($1.13B), and cash equivalents ($310.3M). Total liabilities were $2.35 billion, with deposits of $1.42 billion and borrowings of $819.9M. Shareholders' equity was $397.6 million.
The filing does not contain forward-looking statements, management guidance, or specific strategic priorities for future periods. Risk factors mentioned in the context of the financial statements include credit losses (with a provision of $38.7 million), interest rate risk affecting net interest income, and market conditions impacting loan sales and securitizations. The company's liquidity position appears adequate with cash and cash equivalents of $310.3 million and access to additional funding through deposits and borrowings. The significant negative operating cash flow reflects the company's business model of originating and selling loans, which requires substantial upfront funding before generating proceeds from sales.