NewtekOne Sees 10.6% Revenue Growth and 24.4% Tangible Book Value Increase
NewtekOne reported Q4 EPS of $0.65 (vs. $0.70 year-ago) and full-year 2025 EPS of $2.21, while book value per share rose 15.9% to $12.19 and tangible book value increased 24.4% to $11.68. Total revenue climbed 10.6% to $284.8 million, efficiency ratio improved to 58.3%, and deposits surged 70% year-over-year.
1. Strong Earnings and Revenue Growth
NewtekOne reported fourth quarter 2025 basic and diluted EPS of $0.65, compared with $0.70 and $0.69 in Q4 2024, while full-year 2025 EPS rose to $2.21 and $2.18 from $1.97 and $1.96 in 2024. Total revenue for 2025 reached $284.8 million, up 10.6% year-over-year, driven by both net interest income and noninterest income. Net income before taxes climbed 16.4% to approximately $80.0 million. Management highlighted that operating expenses increased only 2.1%, contributing to an improved efficiency ratio of 58.3% for 2025, down from 63.2% a year earlier.
2. Robust Capital and Profitability Metrics
At year-end, book value per common share stood at $12.19, a 15.9% increase year-over-year, while tangible book value rose 24.4% to $11.68. Fourth quarter return on average assets (ROAA) was 3.20%, with full-year ROAA of 2.78% among the top 2% of similarly sized bank holding companies. Return on average equity (ROAE) reached 18.7% in Q4 and 16.6% for 2025, and return on average tangible common equity (ROTCE) was 22.3% and 19.0%, respectively. Pre-provision net revenue grew 25.1% to $118.7 million.
3. Loan Origination and Deposit Momentum
In the quarter, NewtekOne originated $113 million of Alternative Loan Program (ALP) loans (up from $91 million a year ago) and $162 million of SBA 7(a) loans (versus $262 million in Q4 2024), selling $79 million of guaranteed portions. SBA 504 originations totaled $52 million, with $8 million sold. CRE and C&I originations were $25 million in Q4. Commercial deposits at Newtek Bank increased $34.0 million (9% Q/Q, 70% Y/Y) and core consumer deposits grew $167.0 million (19% Q/Q, 40% Y/Y). The bank opened over 9,000 deposit accounts, a record level.
4. Strategic Initiatives and 2026 Outlook
Post-quarter, the company paid a Series B preferred dividend of $21.25 per share equivalent and a $0.19 common dividend. At its January Investor Day, management set 2026 EPS guidance of $2.15–$2.55. On January 21, NewtekOne closed its largest-ever securitization—$295 million backed by $342 million of ALP loans, ten times oversubscribed across 32 institutions. The firm repurchased 126,595 common shares at an average of $10.43 and continues to diversify funding, expand its technology-enabled platform and deepen cross-sell of insurance and payments solutions to its business clients.