NewtekOne, Inc. Reports Strong Q3 2024 Earnings

Newtek Business Services ( (NEWT) ) has released its Q3 earnings. Here is a breakdown of the information Newtek Business Services presented to its investors.

NewtekOne, Inc. is a financial holding company providing a wide range of business and financial solutions to independent business owners across the United States, including banking, lending, and electronic payment processing services. The company recently reported its third quarter 2024 earnings, highlighting a growth in net income to $11.9 million, or $0.45 per share, which marks a 4.7% increase compared to the previous quarter. The company’s total assets rose significantly to $1.7 billion, while loans held for investment increased by 13.3% over the year.

Key financial metrics from the third quarter showcase a strong performance, with net interest income reaching $11.0 million, a significant 20.9% increase over the previous quarter. The Newtek Payments segment reported a pretax income of $5.3 million, reflecting a notable 32.5% growth compared to the previous year. The company also completed a $75 million public offering of fixed-rate senior notes, further solidifying its financial position.

NewtekOne’s strategic moves include closing a $154.3 million alternative business loan securitization and entering an agreement to sell its subsidiary, Newtek Technology Solutions, as part of its transition to a financial holding company. The company continues to forecast its annual EPS for 2024 in the range of $1.85 to $2.05, with expectations for further growth in 2025.

Looking ahead, NewtekOne remains optimistic about its growth prospects, supported by a strong balance sheet and increased efficiency in operations. The company aims to leverage technology and its unique business model to drive further success and maintain its growth trajectory, aligning with its mission to enhance client success through comprehensive business solutions.