0001628280-26-028891
SEC filingNewtekOne reported 1Q26 EPS of $0.43, up 19% YoY, and provided 2026 EPS guidance of $2.15-$2.55 and a 2027 target of 10% growth.
NewtekOne's first quarter 2026 results demonstrated strong year-over-year growth across key income statement metrics. Diluted EPS of $0.43 increased 22.9% from $0.35 in 1Q25, driven by a 23.6% rise in net interest income to $17.2 million and a 46.7% jump in pre-tax net income to $17.1 million. The efficiency ratio remained relatively stable at 62.4% versus 62.1% in the prior year, while Newtek Bank's efficiency ratio improved significantly to 40.0% from 48.2%. Return on average tangible common equity (ROTCE) expanded to 14.8% from 13.8%.
Management commentary highlighted several strategic developments. The company closed a $295 million securitization of Alternative Loan Program (ALP) loans, which was approximately ten times oversubscribed and distributed to 32 institutional investors. Notably, NewtekOne shifted origination of C&I long amortizing loans from the holding company to Newtek Bank, funding them with deposits rather than warehouse credit facilities, which management expects to improve margins and diversify the bank's loan portfolio. Deposits nearly doubled year-over-year to approximately $1.9 billion, with record account openings in the quarter.
Looking forward, management reaffirmed full-year 2026 EPS guidance of $2.15-$2.55 and established a 2027 target of 10% EPS growth, implying a range of $2.40-$2.80. The company also noted stable nonperforming loans at Newtek Bank, with NPLs of $54.0 million at quarter-end, and highlighted the use of AI in origination and underwriting to improve efficiency and capture market share.