NEWT earnings analysis
What we found in NEWT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
NewtekOne delivered year-over-year second-quarter net income growth of 6.6% to $14.611 million, led by a 124.8% increase in Banking segment earnings and strong deposit growth. However, EPS declined to $0.47 from $0.52, net interest margin fell to 2.15% from 2.98%, and asset-quality metrics worsened, with nonperforming assets reaching 8.1% of total assets. Liquidity and leverage improved through $731.1 million of deposit growth and a $265.696 million reduction in borrowings, but operating cash usage of $420.770 million indicates continued reliance on financing flows.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Net income grew despite lower EPS
- Second-quarter net income increased 6.6% to $14.611 million from $13.703 million year over year, although diluted EPS declined to $0.47 from $0.52. Six-month net income rose 21.4% to $28.012 million from $23.070 million.
- Banking segment more than doubled
- The Banking segment generated $27.575 million of second-quarter net income, up 124.8% from $12.265 million, while net interest income increased to $22.9 million from $14.6 million.
- Deposit growth strengthened liquidity
- Total deposits increased by $731.1 million to approximately $2.2 billion, supporting total liquidity sources of $471.048 million versus $386.701 million at December 31, 2025.
- Leverage reduced materially
- Borrowings declined $265.696 million to $554.192 million from $819.888 million at year-end, primarily reflecting facility repayments and the $95.0 million maturity of the 2026 Notes.
- Six-month core earnings improved
- Six-month net interest income increased to $32.190 million from $27.856 million, while the provision for credit losses declined modestly to $21.722 million from $22.622 million.
- Securitization platform expanded
- The company completed the 2026-1 securitization backed by $341.8 million of collateral, and residuals in securitizations increased to $204.0 million from $76.7 million at December 31, 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Margin compression persists
- Second-quarter net interest margin contracted to 2.15% from 2.98% year over year. The average cost of deposits was 3.75%, while the average cost of borrowings was 9.13%.
- Credit-loss provision increased
- The second-quarter provision for credit losses increased to $12.114 million from $9.117 million, driven by higher net charge-offs, specific reserves and loan balances, particularly SBA 7(a) loans.
- Asset quality deteriorated
- Nonperforming assets rose to $258.561 million, or 8.1% of total assets, from $160.213 million, or 5.8%, at December 31, 2025. Nonaccrual loans at amortized cost increased to $137.004 million from $78.814 million.
- Cash flow remains funding dependent
- Operating activities used $420.770 million of cash during the six months, compared with $260.518 million in the prior-year period; investing activities used an additional $225.101 million. Financing activities provided $730.587 million, primarily from a $731.8 million increase in deposits.
- Non-Banking segments weakened
- Alternative Lending net income fell 96.0% to $0.602 million from $14.998 million as NALH ceased originating loans after December 31, 2025. Payments net income also declined 15.2% to $3.531 million from $4.166 million.
- SBA repurchase and valuation exposure
- Newtek Bank agreed to repurchase certain SBA 7(a) guaranteed portions, with an initial third-quarter 2026 repurchase of $118 million. The company also carries $204.0 million of securitization residuals at fair value, exposing earnings to valuation and credit assumptions.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.47
- Segment
- Banking: $27.575 million net income, up 124.8% from $12.265 million
- Segment
- Alternative Lending: $0.602 million net income, down 96.0% from $14.998 million
- Segment
- NSBF: $(9.338) million net loss, versus $(3.774) million
- Segment
- Payments: $3.531 million net income, down 15.2% from $4.166 million
What they said about what is next.
The 10-Q does not provide or update quantitative company guidance. Prior 2026 EPS guidance of $2.15-$2.55 was disclosed in the prior 8-K, but was not reaffirmed in this filing.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 8, 2026
- NewtekOne, Inc. reported Q1 2026 earnings with match to consensus EPS at $0.43, but revenue of $70.96 million fell short of expectations by 6.08%. The financial results reflected a notable increase in net interest…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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