NewtekOne, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Basic and diluted EPS for the three months ended June 30, 2026, were $0.48 and $0.47, respectively, compared to $0.53 and $0.52 for the same period in 2025.
• Net income available to common shareholders was $13.548 million for 2Q26, compared to $13.303 million in 2Q25.
• Total assets increased to $3.185 billion as of June 30, 2026, from $2.745 billion as of December 31, 2025, representing nearly 50% year-over-year growth in assets.
• Book value per common share was $12.64 at the end of 2Q26, up 13.8% year-over-year and 2.3% quarter-over-quarter.
• Tangible book value per common share was $12.13 at the end of 2Q26, up 15.0% year-over-year and 2.4% quarter-over-quarter.
• The efficiency ratio improved to 58.4% in 2Q26 from 60.3% in 2Q25.
• Return on average assets (ROAA) was 1.97% in 2Q26, down from 2.58% in 2Q25.
• Return on average equity (ROAE) was 13.3% in 2Q26, down from 17.4% in 2Q25.
• Return on average tangible common equity (ROTCE) was 15.7% in 2Q26, down from 19.6% in 2Q25.
• Net interest income was $14.964 million in 2Q26, compared to $13.923 million in 2Q25.
• Noninterest income totaled $60.117 million in 2Q26, compared to $56.275 million in 2Q25.
• Noninterest expense was $43.817 million in 2Q26, up 3.6% from 2Q25.
• Total deposits reached $2.151 billion as of June 30, 2026, compared to $1.418 billion as of December 31, 2025.
• Non-affiliate business deposits at Newtek Bank increased $15 million (5% Q/Q) and $103 million (47% Y/Y).
• Core consumer deposits grew $297 million (21% Q/Q) and $951 million (124% Y/Y).
• Insured deposits comprised 81% of total deposits as of June 30, 2026.
• Loans held for investment at amortized cost, net, were $1.087 billion as of June 30, 2026, compared to $851 million as of December 31, 2025.
• Loans held for sale were $500.8 million as of June 30, 2026, down from $971.8 million as of December 31, 2025.

Guidance and Future Outlook

• 2Q26 EPS of $0.48 (basic) and $0.47 (diluted) fell within the previously provided guidance range of $0.42-$0.52.
• Management is re-evaluating future guidance due to an evolving mix of revenue and business lines at the Bank.
• The shift toward holding more loans on the Bank's balance sheet is expected to increase net interest income while reducing revenue from gains on the sale of loans.
• Interest and net interest income are expected to reflect a full quarter of impact from late-second-quarter C&I LA loan growth in the third quarter of 2026.
• Net interest income at the Bank climbed 24% quarter-over-quarter and 56% year-over-year in 2Q26.

Business Segments and Product Lines

• Originated $104 million of C&I LA Loans in 2Q26, compared to $78 million in 2Q25.
• Originated $208 million of SBA 7(a) loans in 2Q26, compared to $206 million in 2Q25.
• Originated $49 million of SBA 504 loans in 2Q26, compared to $26 million in 2Q25.
• Originated $41 million of CRE loans and $12 million of C&I loans held for investment (HFI) in 2Q26, compared to $20 million and $5 million respectively in 1Q25.
• Loans held on Newtek Bank's balance sheet comprise 86% of the Company's total loans, up from 68% one year ago.
• The legacy non-bank 7(a) lender, Newtek Small Business Finance (NSBF), portfolio represented less than 10% of total loans as of June 30, 2026, down from 19% one year earlier.
• Since the acquisition of Newtek Bank in early 2023, roughly 54% of the Bank's business lending clients have opened a business deposit account.
• All loans are now originated at the Bank as of the first quarter of 2026, funded by deposits.
• The company supports independent business owners through banking, business lending, SBA lending, electronic payment processing, accounts receivable financing, inventory financing, insurance, payroll, benefits, and technology solutions.

Market and Competitive Landscape

• According to SBA data, NewtekOne has supported roughly 280,000 jobs since 2020, ranking second among all lenders in the 7(a) loan program for jobs supported.
• The company positions itself as one of the top firms serving independent business owners in the U.S.
• The business model, emphasizing digital account opening, real-time payments, the Newtek Advantage® portal, NewTracker® referral system, and frictionless lending, is being recognized by the banking industry as a model to envy.

Risks and Challenges

• The mix of revenue and business lines is evolving, which may impact future revenue composition and requires re-evaluation of guidance.
• Forward-looking statements are subject to significant risks and uncertainties, including changes in regulatory filings and economic conditions.
• Actual results may differ materially from forward-looking statements regarding assets under supervision, capital ratios, risk-weighted assets, and balance sheet data, which are preliminary estimates.

Management Commentary and Tone

• CEO Barry Sloane expressed pleasure that EPS results were within guidance and highlighted healthy profitability metrics.
• Management noted capturing operating leverage with assets up almost 50% year-over-year while operating expenses increased only 3.6% year-over-year.
• Sloane praised the "deposit gathering engine" built at Newtek Bank, citing attractive rates and no fees as key drivers for consumer and business deposit growth.
• Management highlighted the strategic shift to originating all loans at the Bank to fund new originations with deposits.
• The tone was confident regarding the technological enablement of the bank and its competitive differentiation in the independent business owner market.

Other Key Points

• On July 1, 2026, the Company paid a dividend on Series B Preferred shares of $21.25 per Preferred Share ($0.53125 per depositary share).
• On July 1, 2026, the Company paid a quarterly cash dividend of $0.19 per share on outstanding common shares.
• Dividend amounts and timing remain subject to the discretion of the Board of Directors.
• A conference call to discuss results was held on August 6, 2026, featuring CEO Barry Sloane and CFO Frank M. DeMaria.
• The presentation and replay of the call are available on the Investor Relations section of the company's website.