NewtekOne, Inc. reported a net income of $23.1 million for the six months ended June 30, 2025, translating to earnings of $0.89 per share, compared to $20.6 million or $0.81 per share for the same period in 2024. The increase in net income was driven by a $16.1 million rise in interest income from loans and a $7.3 million increase in noninterest income, although these gains were partially offset by a $12.8 million increase in the provision for credit losses and a $6.8 million rise in interest expenses. Total interest income reached $74.4 million, up from $56.4 million in the prior year, while total interest expenses increased to $46.6 million from $38.4 million.
The company’s total assets grew to $2.1 billion, a 3.2% increase from $2.1 billion at the end of 2024. This growth was primarily attributed to a significant increase in loans held for sale, which rose by $142.3 million to $514.6 million, driven by new loan originations and holding guaranteed portions of SBA 7(a) loans for longer periods. Conversely, loans held for investment at fair value decreased by $43.6 million to $326.1 million, reflecting the cessation of new loan originations by NSBF, which has transitioned its SBA 7(a) loan pipeline to Newtek Bank.
Strategically, NewtekOne has undergone significant organizational changes, including the acquisition of the National Bank of New York City (renamed Newtek Bank) in January 2023, which has allowed the company to operate as a financial holding company. This transition has enabled Newtek Bank to originate and service SBA loans, enhancing its market position. The company also completed a securitization transaction in April 2025, selling $155.9 million of Class A Notes backed by ALP loans, which contributed to a net gain of $31.5 million from residuals in securitizations.
Operationally, NewtekOne has focused on increasing its liquidity position, with cash and cash equivalents totaling $213.3 million as of June 30, 2025. The company has also seen a rise in total deposits, which reached $1.1 billion, up by $110.2 million from the previous period. The total number of loans originated during the first half of 2025 was 1,042, compared to 1,093 in the same period of 2024, indicating a slight decrease in loan activity. The company’s allowance for credit losses increased to $42.6 million, reflecting a proactive approach to managing credit risk amid changing market conditions.
Looking ahead, NewtekOne anticipates continued growth in its lending operations, particularly through its SBA loan offerings, while managing the challenges posed by rising interest rates and market volatility. The company remains committed to enhancing its operational efficiency and expanding its market share in the small and medium-sized business sector, leveraging its recent acquisitions and strategic initiatives to drive future profitability.
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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