Corrected: NewtekOne Q2 net interest income rises on higher loan originations and deposits

NewtekOne

06/08/2026 21:40

Corrects EPS to $0.47, from $0.48, in table

Overview
U.S. business solutions provider's Q2 EPS declined yr/yr but was within company guidance
Net interest income for Q2 rose yr/yr, driven by higher loan originations and deposits
Company paid quarterly dividend on common shares after Q2 end

Outlook
Company says current guidance is being re-evaluated due to evolving revenue and business mix
NewtekOne expects more net interest income and less gain on sale of loans going forward
Company expects third-quarter net interest income to reflect full impact of late 2Q loan growth

Result Drivers
LOAN ORIGINATION AND BALANCE SHEET GROWTH - Co said increased loan originations across C&I, SBA 7(a), SBA 504, and CRE loans drove asset growth, with a higher proportion of loans now held on Newtek Bank's balance sheet
DEPOSIT GROWTH - Co attributed strong growth in business and consumer deposits to its digital banking model, with total deposits nearly doubling yr/yr
NET INTEREST INCOME INCREASE - Net interest income at the bank rose 24% Q/Q and 56% Y/Y, supported by holding more guaranteed portions of SBA 7(a) loans and increased C&I loan balances

Company press release: ID:nGNXbW8NSL

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
 
$0.47
 
Q2 Net Interest Income
 
$14.96 mln
 
Q2 Pretax Profit
 
$19.15 mln
 
Q2 Provision for Loan Credit Losses
 
$12.11 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 $15.00, about 0.9% below its August 5 closing price of $15.13
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads
Aug 5 - Velocity Financial Q2 revenue, NII grows on loan portfolio expansion, recoveries
Aug 5 - Security Bancorp Q2 net income rises on higher loan volumes
Aug 5 - NASB Financial Q3 profit rises on higher net interest income

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(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.)