NewtekOne Holds 2026 Guidance After EPS Halves

The Tip Desk · October 28, 2026 · 3 min read

Basic and diluted EPS were $0.34 a share in the third quarter as net interest income reached $19 million and 2026 guidance of $1.70-$1.80 was maintained.

NewtekOne, Inc. (NEWT), a financial holding company that provides banking and business-lending products to independent business owners, reported basic and diluted earnings of $0.34 a share for the three months ended September 30, 2026, down from $0.68 and $0.67 a year earlier. The company said it was comfortable with its previously issued 2026 EPS guidance range of $1.70-$1.80.

The quarter’s operating story was a shift in the mix of loan income. Chief Executive Barry Sloane said NewtekOne is holding more guaranteed portions of SBA 7(a) loans on its balance sheet than in the past, which he said is generating net interest income growth and transitioning revenue away from gain-on-sale income. Net interest income was $18.89 million, up 26% from $14.96 million in the second quarter and 30% from $14.55 million a year earlier.

Gain-on-sale income moved the other way. Net gains on sales of loans were $32 thousand, versus $11.23 million in the second quarter and $9.56 million in the year-ago quarter.

Deposits more than doubled year over year. Total deposits ended the quarter at $2.51 billion, up $1.3 billion from a year earlier, and Newtek Bank deposit accounts exceeded 47,000, compared with about 21,800 at the end of the third quarter of 2025. Core consumer deposits grew $231 million, or 13%, from the second quarter and $1.1 billion, or 126%, from a year earlier. Non-affiliate business deposits rose $13 million, or 4%, quarter over quarter and $109 million, or 48%, year over year. Insured deposits comprised 79% of deposits.

Consumer deposit growth slowed from $297 million, or 21%, in the second quarter. Business deposit growth slowed from $15 million, or 5%.

Loans on the balance sheet ended at more than $2.7 billion, up 46% from $1.9 billion a year earlier. Originations of SBA 7(a) loans were $215 million, versus $187 million a year earlier. C&I LA originations were $75 million, down from $104 million a year earlier. SBA 504 originations were $45 million. CRE and C&I loans held for investment originated at $28 million and $23 million. For the Small Business Administration’s fiscal year ending September 30, 2026, the company said it ranked number one by SBA 7(a) loan approval count and number two by dollars of approvals.

The provision for credit losses was $15.39 million, up from $12.11 million in the second quarter and $7.71 million a year earlier. The allowance for credit losses on loans held for investment at amortized cost was $57.05 million at September 30.

Operating expenses were $42.17 million, down from $43.82 million in the second quarter and essentially flat with the year-ago quarter’s $42.16 million. The efficiency ratio was 58.7%, versus 56.3% a year earlier. Return on average assets was 1.30% and return on average equity 9.2%. Book value per common share ended at $12.80; tangible book value per common share was $12.30.

Sloane said the company anticipates bringing a securitization backed by C&I LA loans to market in the first quarter of 2027, which would be its fifth C&I LA securitization and 18th overall. He also said NewtekOne is exploring strategic alternatives intended to help the market recognize the company’s value.

On October 1, 2026, the company paid a quarterly cash dividend of $0.19 a share on common stock and $21.25 on each Series B preferred share.