NewtekOne, Inc. reported a net income of $13.4 million for the first quarter of 2026, translating to earnings of $0.43 per share, a significant increase from the $9.4 million, or $0.36 per share, recorded in the same period last year. The company's total revenue for the quarter reached $100.0 million, up from $90.3 million in the prior year, driven by a rise in net interest income and noninterest income. Net interest income after provision for credit losses was $7.6 million, a substantial increase from $428,000 in the previous year, reflecting a growing loan portfolio and improved interest margins.
Total assets increased by 5.2% to $2.9 billion as of March 31, 2026, compared to $2.7 billion at the end of 2025. This growth was primarily attributed to a $91.6 million increase in loans held for investment at amortized cost, which rose to $988.3 million. However, loans held for sale at fair value decreased by $202.6 million, largely due to the transfer of ALP loans to the NALP Business Loan Trust 2026-1 securitization transaction. The company also reported a settlement receivable of $51.5 million, a significant increase from the previous quarter, indicating higher loan origination volumes.
Strategically, NewtekOne has made significant operational changes, including the transition of SBA 7(a) loan originations from its non-bank subsidiary NSBF to Newtek Bank, which is now the primary lender. This shift is expected to enhance efficiency and profitability. Additionally, the company began originating C&I LA loans in the first quarter of 2026, further diversifying its lending portfolio. The company’s total deposits increased by $439.5 million to $1.9 billion, driven by competitive interest rates and strong customer relationships.
Looking ahead, NewtekOne remains focused on expanding its market share in the small and medium-sized business (SMB) sector, which it estimates to encompass over 34 million businesses in the U.S. The company is also actively managing its liquidity and capital resources, with plans to utilize proceeds from recent debt offerings for general corporate purposes. The management expressed confidence in maintaining its regulatory capital ratios, which exceed the minimum requirements, and in navigating the current economic landscape characterized by rising interest rates and market volatility.
About NewtekOne, Inc.
NewtekOne, Inc. is a financial holding company providing business and financial solutions to U.S. small and medium-sized businesses. Its core activities include SBA 7(a) and 504 loan origination, commercial lending, payment processing, insurance, payroll, and depository services through its digital bank. Leveraging proprietary technology like NewTracker and Newtek Advantage, it offers cost-effective, integrated solutions, targeting underserved SMB markets with a focus on innovation, diversification, and efficient client acquisition.
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