Key Highlights

  • Diluted EPS of USD 0.34 fell from USD 0.67 a year earlier and trailed the USD 0.45 consensus estimate.
  • Net interest income reached USD 18.9 million, up 26% from the prior quarter and 30% from a year ago.
  • Total deposits more than doubled year over year to USD 2.5 billion, with core consumer deposits up USD 1.1 billion.
  • Management maintained 2026 EPS guidance of USD 1.70 to USD 1.80 while tangible book value rose to USD 12.30.

NewtekOne, Inc. (NASDAQ:NEWT) reported third-quarter 2026 diluted earnings per share of USD 0.34, down from USD 0.67 a year earlier and below a consensus estimate of USD 0.45. Total income, which combines net interest income and noninterest income, came to USD 71.8 million, under a consensus estimate of USD 77.1 million and below the USD 74.9 million posted in the third quarter of 2025.

Net income fell to USD 10.7 million from USD 17.9 million, and return on average assets slipped to 1.30% from 3.14%. The efficiency ratio moved to 58.7% from 56.3%. The press release reported diluted EPS of USD 0.34, and that filing figure is the one used throughout.

Revenue Mix Shifts Toward Net Interest Income

Net interest income of USD 18.9 million was the highest quarterly total the company has generated since becoming a financial holding company, according to its chief financial officer. Interest income climbed to USD 53.4 million from USD 39.1 million, while interest expense rose to USD 34.5 million from USD 24.5 million as deposit balances grew. Management is holding more government-guaranteed portions of SBA 7(a) loans on the balance sheet instead of selling them, which lifts recurring interest income and reduces gain-on-sale revenue.

That shift is visible in noninterest income, which dropped to USD 52.9 million from USD 60.4 million. Net gains on sales of loans fell to USD 32 thousand from USD 9.6 million, and gains on fair value loans eased to USD 20.0 million from USD 29.3 million. The provision for credit losses roughly doubled to USD 15.4 million from USD 7.7 million, and operating expenses of USD 42.2 million were flat against asset growth of 47%.

Guidance, Capital and Credit Commentary

CEO Barry Sloane said the company is comfortable with its 2026 EPS range of USD 1.70 to USD 1.80. In the question session he pointed to a seasonal lift in fourth-quarter lending and to sequential net interest income growth of roughly 20% as drivers. He also said higher rates have made loan growth harder, that origination volumes have been deliberately muted, and that underwriting standards have been tightened.

On credit, the allowance for credit losses stood at USD 57.1 million, and about USD 51 million of it relates to unguaranteed SBA 7(a) balances, equal to 8.1% of those balances. Management put nonaccruals at 3.9% when government-guaranteed amounts are excluded. Book value per common share reached USD 12.80, up 9.2% year over year, and the company paid a quarterly dividend of USD 0.19 per common share on October 1.

Figures That Frame the Next Report

Four items frame the next reporting cycle. The first is the 2026 EPS range of USD 1.70 to USD 1.80 against a third-quarter figure of USD 0.34. The second is net interest income, where management pointed to roughly 20% sequential growth after USD 18.9 million in the third quarter. The third is credit, tracked through the USD 15.4 million provision and the 8.1% reserve on unguaranteed SBA balances. The fourth is a securitization of C&I long amortizing loans targeted for January 2027, backed by USD 350 million to USD 400 million of collateral, which would be the company's 18th overall.