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NewtekOne Q3 net interest income rises

NewtekOne Q3 net interest income rises


Overview

  • US business solutions provider's Q3 EPS fell year-over-year

  • Net interest income rose 30% yr/yr

  • Company's deposit balances more than doubled year-over-year, reaching $2.5 bln


Outlook

  • Company maintains 2026 EPS guidance range of $1.70-$1.80

  • Company expects to bring C&I LA loan securitization to market in Q1 2027

  • Company expects revenue mix to shift toward recurring net interest income


Result Drivers

  • DEPOSIT GROWTH - Co attributed deposit growth to attractive rates, no fees, digital account opening, and 24/7 customer support

  • LOAN ORIGINATIONS - Co said higher SBA 7(a) and C&I loan originations contributed to loan balance growth


Company press release: ID:nGNX8YzVGj


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Interest Income

$18.89 mln

Q3 Pretax Profit

$14.22 mln

Q3 Provision for Loan Credit Losses

$15.39 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the corporate financial services peer group is "buy."

  • Wall Street's median 12-month price target for NewtekOne, Inc. is $14.00, about 21.5% above its October 27 closing price of $11.52

  • The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago


Reuters Recommended Reads

  • Oct 27 - Banc of California Q3 EPS rises on higher net interest income

  • Oct 26 - Bank of Hawaii Q3 net income rises on higher net interest income

  • Oct 28 - Hope Bancorp Q3 net income rises 16% year over year


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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