Financial holding company Newtek reported strong financial results for 2025 with net income before taxes of approximately $80 million, up 16.4%, and total revenue of $284 million, up 10.6%. The company focuses on independent business owners and SMBs, offering loans with long amortizations, zero fees, integrated payroll solutions, and insurance products. Newtek has grown significantly, with its financial structure regulated by the Federal Reserve and the OCC. The company utilizes advanced technological solutions to acquire customers cost-effectively. They offer a menu of business and financial solutions for independent business owners, targeting the underserved demographic of 36 million businesses in the US, contributing to 43% of non-farm GDP.
Newtek’s financial structure has evolved over the years, transitioning from a 1933 act company to a BDC in 2014. The acquisition of the National Bank of New York City resulted in significant asset growth, reaching $2.425 billion. The company’s tangible book value has grown substantially, ending 2025 at $12.19, up from approximately $6.92. Newtek’s financial solutions are designed to cater to independent business owners, offering no branches, traditional bankers, brokers, or BDOs, providing cost-effective services on demand.
In 2026, Newtek achieved an EPS of 65¢ for the quarter and $2.21 for the year, up 1211% from 2024. The company closed its largest securitization in January, oversubscribed by 10 times, with 38 institutions subscribing. Newtek’s credit quality matrix has stabilized, with NPLs declining over consecutive quarters. The company’s deposit growth strategy has been successful, with business deposits increasing, consumer deposits growing, and a significant number of lending clients opening business deposit accounts. Newtek continues to capture operating leverage, with an efficiency ratio of 58.3% at the holdco and 47% at the bank, while maintaining a return on average assets of 2.78%.
Newtek’s focus on ALP loans, C and I loans held for sale, and business deposits has been instrumental in driving growth and performance. The company’s commitment to providing innovative and cost-effective financial solutions for independent business owners has contributed to its success in the marketplace. With a strong financial structure, regulatory oversight, and a customer-centric approach, Newtek is well-positioned for continued growth and success in the future.
Read more at Yahoo Finance: NewtekOne (NEWT) Q4 2025 Earnings Call Transcript