NewtekOne (NEWT) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 EPS of $0.43, up 19% year-over-year (basic) and 23% (diluted), with net income before taxes rising 46.7% to $17.1 million and net income of $13.4 million, reaffirming 2026 guidance and setting 2027 EPS midpoint at $2.60.

• Book value per share reached $12.36 and tangible book value per share $11.85, up 15–17% year-over-year and nearly doubling since Q1 2023.

• Deposits nearly doubled year-over-year to almost $1.9 billion, with over 37,000 accounts and robust growth in both business and consumer segments.

• Technology-driven business model, including AI-powered origination and real-time payments, enabled rapid loan origination, digital account opening, and efficiency gains.

• Focused on small and medium-sized business clients, maintaining leadership in SBA lending by units and top-tier loan volume.

Financial highlights

• Originated 961 loans in Q1 2026, up 40% year-over-year, totaling $391 million, with March originations up 34% in dollar terms versus March 2025.

• Total revenue for Q1 2026 was $71.0 million, up 7% from Q1 2025; net interest income rose 23.6% to $17.2 million.

• Return on average assets was 1.96% for Q1 2026, up from 1.81% in Q1 2025.

• Efficiency ratio at Newtek Bank improved to 40% for the quarter, while the consolidated efficiency ratio was about 62%.

• Gain on sale of SBA 7(a) loans was $26.7 million, with sale premiums around 110.5.

Outlook and guidance

• Reaffirmed 2026 EPS guidance range at $2.15–$2.55 and set 2027 midpoint at $2.60, targeting 10% EPS growth for 2027.

• 2026 revenue projected at $315–$345 million; net income guidance $62–$74 million.

• Loan origination goal for 2026 set at $1.8 billion, with assumptions of $1B SBA 7(a), $500M ALP, $175M SBA 504, and $150M C&I/CRE net growth.

• Expect continued double-digit loan growth and further deposit expansion, with focus on diversification and risk management.

• Liquidity and capital levels are considered sufficient to support planned operations and absorb market volatility.