NewtekOne, Inc. — 3Q26 Earnings Summary

Financial Performance:

• Basic and diluted EPS for the three months ended September 30, 2026, were $0.34, down from $0.68 and $0.67, respectively, in the same period of 2025.
• Net income for the quarter was $10.704 million, compared to $17.901 million in 3Q25.
• Net income available to common shareholders was $9.641 million, down from $17.429 million in 3Q25.
• Net interest income for 3Q26 was $18.892 million, a 26% increase quarter-over-quarter and a 30% increase year-over-year.
• Net interest income for the first nine months of 2026 increased 20% compared to the first nine months of 2025.
• Noninterest income was $52.893 million for 3Q26, down from $60.388 million in 3Q25.
• Net gains on loans under the fair value option were $19.986 million for 3Q26, compared to $29.250 million in 3Q25.
• Net loss on loan servicing assets was $1.342 million for 3Q26, compared to a $4.493 million loss in 3Q25.
• Total noninterest expense was $42.172 million for 3Q26, flat compared to $42.159 million in 3Q25.
• Operating expenses grew roughly 4% year-to-date while assets grew 47% relative to 3Q25.
• Efficiency ratio was 58.7% for 3Q26, compared to 56.3% for 3Q25.
• Return on average assets (ROAA) was 1.30% for 3Q26, down from 3.14% in 3Q25.
• Return on average equity (ROAE) was 9.2% for 3Q26, down from 20.4% in 3Q25.
• Return on average tangible common equity (ROTCE) was 10.8% for 3Q26, down from 24.0% in 3Q25.
• Book value per common share ended 3Q26 at $12.80, up 9.2% year-over-year and 1.3% quarter-over-quarter.
• Tangible book value per common share ended 3Q26 at $12.30, up 9.6% year-over-year and 1.4% quarter-over-quarter.
• Total assets were $3.526 billion as of September 30, 2026, compared to $2.745 billion as of December 31, 2025.
• Total deposits were $2.511 billion as of September 30, 2026, compared to $1.418 billion as of December 31, 2025.
• Core consumer deposits grew $1.1 billion year-over-year (126%), while non-affiliate business deposits grew $109 million year-over-year (48%).
• Total deposit balances increased by $1.3 billion year-over-year to end 3Q26 at $2.5 billion.
• Insured deposits comprised 79% of total deposits as of September 30, 2026.
• Loans on the balance sheet ended 3Q26 at over $2.7 billion, up 46% compared to $1.9 billion in 3Q25.
• Funded loans totaled approximately $1.2 billion for the first nine months of 2026, up roughly 12% compared to $1.1 billion in the same period of 2025.
• Provision for credit losses was $15.393 million for 3Q26, compared to $7.712 million in 3Q25.
• Borrowings were $539.465 million as of September 30, 2026, down from $819.888 million as of December 31, 2025.

Guidance and Future Outlook:

• The Company maintained its 2026 EPS guidance range of $1.70 to $1.80.
• Management anticipates bringing a securitization backed by C&I LA loans to market in the first quarter of 2027, representing the fifth such securitization and the 18th overall.
• Management noted that none of the previous 17 securitizations have been downgraded or placed on credit watch.
• The Company is exploring all strategic alternatives intended to help the market better recognize the value of its platform.

Business Segments and Product Lines:

• SBA 7(a) loan originations were $215 million in 3Q26, up from $187 million in 3Q25.
• C&I LA loan originations were $75 million in 3Q26, down from $104 million in 3Q25.
• SBA 504 loan originations were $45 million in 3Q26, up from $28 million in 3Q25.
• CRE and C&I loans held for investment (HFI) originated were $28 million and $23 million, respectively, in 3Q26, compared to $18 million and $19 million in 3Q25.
• For the SBA fiscal year ending September 30, 2026, NewtekOne reestablished itself as the top originator of SBA 7(a) loans by loan approval count and ranked number two by dollars of loan approvals.
• SBA 7(a) and longer-amortizing C&I LA loan originations comprised 56% and 20%, respectively, of year-to-date originations.
• Roughly 62% of Newtek Bank's business lending clients have opened a business deposit account since the acquisition in early 2023.
• The number of Newtek Bank deposit accounts exceeded 47,000 as of 3Q26, compared to roughly 21,800 at the end of 3Q25.
• NewtekOne launched an automated integration of insurance products into its loan origination platform, offering key person life insurance up to $3 million, flood insurance, and property & casualty insurance.
• The client service platform was expanded to include Glia for advanced digital engagement and artificial intelligence.
• Connectivity between Newtek Bank accounts and accounting/business applications was expanded.
• The real-time payments platform was updated to include Zelle® for eligible small business banking clients.
• NewtekOne offers five fully digital solutions through an integrated platform, including banking, business lending, SBA lending, electronic payment processing, accounts receivable/inventory financing, insurance, payroll/benefits, and technology solutions.

Market and Competitive Landscape:

• NewtekOne and Newtek Bank hold Trustpilot ratings of 4.9 stars and 4.5 stars out of 5.0, respectively.
• Newtek Bank holds a four-star rating on depositaccounts.com, compared to less than two stars for several of the largest U.S. banks.
• Management stated the company's business model is unlike 99% of the banking industry.
• Management cited the proposed $340 million acquisition of Bluevine Inc. by Valley National Bancorp as an example of value being ascribed to a fully digital platform for independent business owners.

Risks and Challenges:

• Forward-looking statements are subject to significant risks and uncertainties, including regulatory filings and Form 10-Q data changes.
• Actual results may differ materially from forward-looking statements regarding assets under supervision, capital ratios, risk-weighted assets, and balance sheet data.
• Dividend payments remain subject to the discretion of the Board of Directors.

Management Commentary and Tone:

• CEO Barry Sloane expressed comfort with the 2026 EPS guidance and noted momentum from the first half of 2026 continued into the third quarter.
• Management highlighted the "deposit gathering engine" as crucial to funding loan growth.
• Management emphasized the transition of revenue mix from gain on sale income to recurring net interest income by holding more guaranteed portions of SBA 7(a) loans on the balance sheet.
• Management attributed operating leverage to a technology stack developed over 28 years, including the patented NewTracker® operating system.
• Management believes the value of the platform is not currently reflected in market capitalization and is working to have it properly recognized.
• The tone was confident regarding the company's ability to capture operating leverage despite asset growth, with operating expenses remaining flat relative to 3Q25 while assets grew 47%.

Other Key Points:

• On October 1, 2026, the Company paid a dividend on Series B Preferred shares of $21.25 per Preferred Share ($0.53125 per depositary share).
• On October 1, 2026, the Company paid a quarterly cash dividend of $0.19 per share on outstanding common shares.
• A conference call to discuss results was scheduled for October 28, 2026, at 4:30 p.m. ET, hosted by CEO Barry Sloane and CFO Frank M. DeMaria.
• NewtekOne was founded in 1998 to provide business and financial solutions to independent business owners.
• The company converted to a bank holding company almost four years prior to the release date.
• The company's operating model emphasizes digital account opening, automated loan origination, automated lead generation, and a proprietary technology stack.