NewtekOne Reports Q3 2026 Results Amid Strategic Shift Toward Recurring Interest Income
NewtekOne, Inc. (NEWT) reported third-quarter 2026 financial results characterized by a strategic transition from gain-on-sale revenue to recurring net interest income. Net interest income rose significantly to $18.9 million, up 30% year over year, driven by higher yields on commercial and industrial loans and a shift in the revenue mix. While basic EPS decreased to $0.34 compared to $0.68 in the prior-year quarter due to this model transition, management reiterated full-year 2026 EPS guidance of $1.70 to $1.80. The company saw substantial growth in its banking segment, with total deposits reaching $2.5 billion and total assets increasing 47% year over year to $3.5 billion. Despite the growth, management noted increased credit stress on older loan vintages due to high interest rates and inflation, leading to tighter underwriting standards and a reduction in certain loan origination volumes. The company continues to leverage digital account acquisition and strategic alliances to drive deposit growth.
Topics: Banking Performance EPS Loan Originations Net Interest Income SBA Loans
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