NewtekOne EPS Falls to $0.34 as Net Income Declines in Third Quarter
Key Facts
NewtekOne reported basic and diluted earnings per share of $0.34 each in the third quarter ended September 30, 2026, compared with $0.68 and $0.67, respectively, a year earlier. Net income fell to $10.704 million from $17.901 million in the year-ago period, according to the company statement published via GlobeNewswire on October 28. Results came in below analyst estimates cited by Investing.com: estimated EPS was $0.45, or $0.11 above the reported result. Revenue was $71.78 million, versus an estimate of $77.53 million. The comparison reflects a year-over-year decline in profitability alongside expansion in some of the bank's and lending activities.
Profitability and efficiency indicators weakened from year-earlier levels. Return on average assets was 1.30% in the third quarter, compared with 3.14% in the third quarter of 2025. The efficiency ratio rose to 58.7% from 56.3%, according to the company statement. Lower returns and a higher efficiency ratio point to weaker operating indicators than in the comparable period, even as deposits grew and SBA 7(a) loan originations increased. NEWT shares closed at $11.52 on October 27, according to EL7 data. Investing.com reported that the shares closed at $11.46 on October 29 and had fallen 22.72% over the previous three months.
By contrast, Newtek Bank deposits increased by $1.3 billion year over year to $2.5 billion at the end of the third quarter of 2026, and the number of deposit accounts exceeded 47,000. The figures show growth in the company's banking funding base during the period. On the lending side, SBA 7(a) loan originations totaled about $215 million in the third quarter, compared with $187 million in the same period of 2025. C&I LA loan originations totaled $75 million, versus $104 million a year earlier. The two lending activities therefore moved in opposite directions: SBA 7(a) loan originations increased, while C&I LA loan originations declined year over year.
NewtekOne said it had regained the top spot in SBA 7(a) loan originations for the fiscal year ended September 30, 2026, ranking first by number of approvals and second by dollar volume. The ranking provides context for the company's presence in the administration's loan market, while SBA 7(a) loan originations totaled $215 million in the third quarter, compared with $187 million a year earlier. The company paid a quarterly cash distribution of $0.19 per common share on October 1, 2026. The payment followed a quarter in which EPS and net income declined from a year earlier. The company also maintained its 2026 EPS guidance range of $1.70 to $1.80.
The company maintained its annual guidance, first announced on August 28, of $1.70 to $1.80 in EPS for 2026, and at the time set a range of $2.00 to $2.20 for 2027. In its third-quarter results statement, management said it was “comfortable with the previously issued 2026 EPS guidance range.” That means the 2026 range remained in place even as quarterly EPS fell to $0.34 from $0.68 basic and $0.67 diluted a year earlier. The company was scheduled to hold a conference call to discuss results on October 28, 2026, at 4:30 p.m. Eastern time. The call is the company's scheduled opportunity to present and discuss its third-quarter results.
In its subsequent financing plans, NewtekOne said it expects to issue a securitization backed by C&I LA loans in the first quarter of 2027. The expected issuance would be the fifth backed by this type of loan and the eighteenth overall, according to the company. It added that none of its 17 previous issuances had been downgraded or placed on credit watch. This plan follows third-quarter C&I LA loan originations of about $75 million, compared with $104 million in the year-earlier period. The 2026 EPS guidance range remains $1.70 to $1.80, while the next company-set milestone for the securitization is in the first quarter of 2027.