NewtekOne, Inc.

NewtekOne on Friday revised down its 2026 and 2027 earnings guidance, sending shares 2.60% lower to $12.00 in morning trading. The company now expects 2026 GAAP EPS in the range of $1.70-$1.80, down from its April guidance of $2.15-$2.55 and below the Visible Alpha consensus of $2.07. For 2027, EPS is now estimated at $2.00-$2.20, versus the prior $2.40-$2.80 and the consensus of $2.27. The revision reflects a strategic shift to retain more guaranteed portions of SBA 7(a) loans on its balance sheet, boosting net interest income, which is expected to grow from 21% of total revenue in 2025 to 30% or more in the second half of 2026 through 2027. CEO Barry Sloane attributed the move to the bank subsidiary's improved deposit-gathering capabilities, which have exceeded expectations.

NewtekOne, Inc. reported second-quarter 2026 basic and diluted earnings per share of $0.48 and $0.47, respectively, compared with $0.53 and $0.52 a year earlier, landing within its guidance range of $0.42 to $0.52. Book value per common share rose 13.8% year-over-year to $12.64, while tangible book value per common share increased 15.0% to $12.13. Total deposits nearly doubled from a year ago, driven by a 47% rise in non-affiliate business deposits and a 124% surge in core consumer deposits. The company originated $104 million in C&I LA loans, $208 million in SBA 7(a) loans, and $49 million in SBA 504 loans during the quarter. CEO Barry Sloane noted that the business model is evolving toward holding more loans on balance sheet, which will increase net interest income but reduce gain-on-sale revenue, prompting a re-evaluation of forward guidance.

NewtekOne has filed for a mixed securities shelf offering of up to $650 million. Net proceeds from any future offerings under the shelf will be used for general corporate purposes. The securities may be offered at prices and on terms to be described in one or more supplements to the prospectus. NewtekOne shares fell 2.4% in post-market trading.