NewtekOne Q2 net interest income rises on higher loan originations and deposits
NEWT•Outlook
- Company says current guidance is being re-evaluated due to evolving revenue and business mix
- NewtekOne expects more net interest income and less gain on sale of loans going forward
- Company expects third-quarter net interest income to reflect full impact of late 2Q loan growth
Result drivers
- Loan origination and balance sheet growth - Co said increased loan originations across C&I, SBA 7(a), SBA 504, and CRE loans drove asset growth, with a higher proportion of loans now held on Newtek Bank's balance sheet
- Deposit growth - Co attributed strong growth in business and consumer deposits to its digital banking model, with total deposits nearly doubling yr/yr
- Net interest income increase - Net interest income at the bank rose 24% Q/Q and 56% Y/Y, supported by holding more guaranteed portions of SBA 7(a) loans and increased C&I loan balances
Q2 results and dividend
- U.S. business solutions provider's Q2 EPS declined yr/yr but was within company guidance
- Net interest income for Q2 rose yr/yr, driven by higher loan originations and deposits
- Company paid quarterly dividend on common shares after Q2 end
