NewtekOne 1Q26 EPS Rises 19% to $0.43; Deposits Jump 92% Y/Y
NewtekOne reported 1Q26 EPS of $0.43, up 19.4% year-over-year, and net interest income of $17.2 million, a 23.6% increase. Deposits surged 92% year-over-year, book value per share rose 15.2% to $12.36 and the company closed a $295 million rated securitization.
1. Quarterly Earnings and Outlook
NewtekOne reported basic and diluted EPS of $0.43 for 1Q26, representing 19.4% and 22.9% year-over-year growth. Net interest income reached $17.2 million, net income before taxes was $17.1 million, and management reaffirmed 2026 EPS guidance of $2.15–$2.55 and targeted 10% growth for 2027.
2. Capital, Efficiency and Profitability
Book value per share rose 15.2% to $12.36 and tangible book value increased 16.5% to $11.85 year-over-year. Efficiency ratio was 62.4% overall and 40.0% at Newtek Bank, with ROAA at 1.96%, ROAE at 12.5% and ROTCE at 14.8%.
3. Deposit and Loan Growth
Newtek Bank saw business deposits climb by $173 million (66%) year-over-year and core consumer deposits grow by $668 million (88%). The bank opened over 10,000 deposit accounts, and originations included $86 million of C&I LA loans, $202 million of SBA 7(a) loans and $29 million of SBA 504 loans.
4. Securitization and Capital Actions
The company closed a $295 million rated securitization backed by $342 million of ALP loans, oversubscribed tenfold by 32 institutions. It retired $95 million of senior unsecured notes, paid $0.19 per common share and $21.25 per preferred share dividends, and eliminated two credit facilities.