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Mar 31, 2024
Newtekone Q1 2024 Earnings Report
NewtekOne's first quarter 2024 financial results were reported, showing growth in loans and deposits and EPS exceeding expectations, leading to an increased full-year EPS forecast.
Key Takeaways
NewtekOne reported a net income of $9.7 million, or $0.38 per basic and diluted common share, for the first quarter of 2024. The company's performance was driven by Newtek Bank's SBA 7(a) loan fundings and the alternative loan program. The company is raising its 2024 annual earnings forecast to a range of $1.85 to $2.05 per basic and diluted common share from its previous forecast range of $1.80 to $2.00 per basic and diluted common share.
Net income was $9.7 million, or $0.38 per basic and diluted common share.
Net interest income increased by 93.5% year-over-year to $8.9 million.
Total assets increased by 7.1% to $1.5 billion.
Total SBA 7(a) loan closings increased by 35.9% year-over-year to $207.1 million.
Newtekone
Newtekone
Forward Guidance
The Company is raising its 2024 annual earnings forecast to a range of $1.85 to $2.05 per basic and diluted common share from its previous forecast range of $1.80 to $2.00 per basic and diluted common share.
Positive Outlook
- The Company is raising its 2024 annual earnings forecast to a range of $1.85 to $2.05 per basic and diluted common share from its previous forecast range of $1.80 to $2.00 per basic and diluted common share.
- Newtek Bank's SBA 7(a) loan fundings of $207.1 million, a 35.9% increase over $152.5 million SBA 7(a) fundings for the same period last year.
- Alternative loan program, through NewtekOne's non-bank subsidiary, generated record closings of $53.8 million during the first quarter 2024, compared to $12.2 million closed in the first quarter 2023.
- Newtek Bank continued to raise deposits, growing deposits by approximately 8.9% from the $519.1 million at December 31, 2023 to $565.3 million at March 31, 2024.
- Newtek Bank's net interest margin expanded from 4.43% during the fourth quarter 2023 to 4.80% during the first quarter 2024; and net interest income increased by 16.7% sequentially to $7.7 million during the first quarter 2024 from $6.6 million during the fourth quarter 2023.