NewtekOne, Inc. reported its financial results for the first quarter of 2025, revealing a net income of $9.4 million, or $0.36 per share, compared to $9.7 million, or $0.38 per share, in the same period last year. The company's total assets increased by $76.8 million, or 3.7%, to $2.1 billion, driven by a significant rise in loans held for sale, which surged by $175.7 million to $548.0 million. This growth was primarily attributed to new loan originations, including $82.0 million in Alternative Lending Program (ALP) loans and $93.7 million in SBA loans.
The company experienced a notable increase in interest income, which rose by $10.8 million to $37.9 million, largely due to higher average balances of loans held for investment and loans held for sale. However, interest expense also increased significantly, climbing by $5.8 million to $24.0 million, primarily due to higher costs associated with deposits. The provision for credit losses saw a substantial rise to $13.5 million from $4.0 million in the previous year, reflecting increased net charge-offs and specific reserves on impaired loans.
Strategically, NewtekOne completed the sale of its subsidiary, Newtek Technology Solutions, Inc. (NTS), on January 2, 2025, as part of its transition to a financial holding company. This divestiture was in line with commitments made to the Federal Reserve and resulted in the assets and operations of NTS being classified as held for sale. The company has since focused on enhancing its liquidity position, holding approximately $259.3 million in cash at the Federal Reserve as of March 31, 2025.
Operationally, NewtekOne's loan portfolio remains robust, with total loans amounting to $1.6 billion, an increase of $210.9 million from the previous quarter. The company reported a total of 542 SBA 7(a) loans originated during the quarter, up from 489 in the prior year. The company also maintained a strong capital position, with total shareholders' equity reaching $302.3 million, reflecting a slight increase from $296.3 million at the end of 2024.
Looking ahead, NewtekOne anticipates continued growth in its lending operations, particularly through its banking segment, which has been granted Preferred Lender Program (PLP) status by the SBA. The company remains focused on managing its credit risk and maintaining compliance with regulatory requirements as it navigates the evolving economic landscape.
About NewtekOne, Inc.
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