NewtekOne (NEWT) Q4 2024 earnings summary

Executive summary

• Transitioned from a business development company to a financial holding company with a nationally chartered bank, leveraging technology to disrupt traditional banking models and serve over 30 million independent business owners in the U.S.

• Net income for Q4 2024 was $18.3M ($0.70 basic EPS), up 62.8% year-over-year; full year 2024 net income was $50.9M ($1.97 basic EPS), up from $47.3M in 2023.

• Total assets reached $2.1B at year-end 2024, a 50% increase from 2023; loans held for investment grew 23% to $991.4M.

• Significant deposit growth, with Newtek Bank deposits reaching $1.04B, up 100.3% year-over-year.

• Book value per share increased to $10.52 and tangible book value to $9.39 at Q4 2024.

Financial highlights

• Q4 2024 EPS was $0.70 basic and $0.69 diluted, a 43% increase year-over-year and quarter-over-quarter.

• Net interest income for Q4 2024 was $11.3M, up 36.1% year-over-year; full year net interest income was $40.3M, up 51.5%.

• Non-interest income for 2024 was $217.3M, up 22.9% year-over-year; non-interest income is the dominant revenue source.

• ALP loan closings for 2024 were $269.6M, up 224.9% year-over-year; SBA 7(a) loan closings were $954.3M, up 15.2%.

• Efficiency ratio improved to 63.2% for NewtekOne and 43.5% for Newtek Bank for 2024.

Outlook and guidance

• 2025 EPS guidance raised to a range of $2.10–$2.50, reflecting confidence in continued growth.

• Q1 2025 EPS expected to be $0.28–$0.32, with sequential ramping through the year due to seasonality and gain-on-sale timing.

• Loan originations expected to grow: SBA 7(a) to $1B, SBA 504 to $250M, ALP to $500M.

• Plans to maintain current dividend payout, with yield tracking between 5% and 6%.

• Stress testing shows a 3% charge-off rate would reduce 2025 EPS by $0.49, but profitability would be maintained.