NewtekOne (NEWT) investor relations material

Strategic direction and business model

• Focuses on providing integrated business and financial solutions to independent business owners in the U.S. through a digital-first, branchless model leveraging proprietary technology for scalable customer acquisition and service delivery.

• Five core verticals: banking, business lending, payment processing, payroll, and insurance, serving about 80,000 clients nationwide.

• Emphasizes profitability and total revenue generation, accepting higher NPLs and provisions for higher lending margins and returns, with 80% non-interest income.

• Acquired a national bank in 2023, adding depository solutions and real-time payments, and transitioned to a technology-enabled financial holding company with a three-year OCC-chartered bank track record.

• Partners, including banks and credit unions, can deploy the platform to modernize client experience and expand product offerings.

Financial performance and guidance

• Tangible book value per share grew 62% from $6.92 to $11.22 since 1Q23, with $2.05 per share in dividends distributed over eleven quarters.

• Revenue increased from $203M in 2023 to a projected $282M in 2025, with non-interest income comprising the majority of revenue and efficiency ratio improved from over 80% to 56.3%.

• Return on average tangible common equity rose from 13.8% in 1Q25 to 24.0% in 3Q25, and return on average assets increased from 1.81% to 3.14% over the same period.

• Asset base more than doubled in under three years, with capital ratios strengthening and securitized debt being retired faster than loan amortization, increasing book value and overcollateralization.

• 2026 guidance: EPS of $2.15–$2.55, revenue of $315M–$345M, net income of $62M–$74M, $1B in 7(a) originations, $500M in ALP/C&I loans for sale, $175M in SBA 504 originations, and $150M net growth in C&I/CRE portfolio.

Technology and product innovation

• Newtek Advantage offers a unified, cloud-based platform for business clients, integrating banking, payments, payroll, and insurance with real-time analytics and document storage.

• Proprietary lending operating system automates workflows, enables digital account opening, and integrates with core banking and third-party systems, supporting scale without increasing headcount.

• AI is used for document analysis, credit templates, call recording, document summarization, and financial data analysis, but not for loan decisioning.

• NewTracker, a proprietary CRM and loan operating system, underpins all business lines and is fully owned and developed in-house.

• Launching new offerings: small business term loans (apply in 7 minutes, fund in 7 days) and the Triple Play (business account, line of credit, debit card with no fees and interest on balances).