NewtekOne, Inc. Reports 2Q26 Basic and Diluted EPS of $0.48 and $0.47

Deposit and book value growth offset weaker earnings at NewtekOne this quarter.

What the company is saying

NewtekOne, Inc. presents its second quarter 2026 results as a period of strong deposit and book value growth, highlighting a 124% year-over-year increase in core consumer deposits and a 13.8% rise in book value per share. The company emphasizes operational momentum through increased loan originations, particularly in C&I LA, SBA 7(a), and SBA 504 categories. Management spotlights improved efficiency, with the ratio dropping to 58.4% from 60.3%, and stresses the shift of loans onto the bank balance sheet, now at 86% of total loans. Dividend payments on both preferred and common shares are called out as evidence of ongoing shareholder returns. The announcement is measured in tone, avoids promotional language, and explicitly states that forward guidance is under review, signaling caution about near-term forecasts.

What the data suggests

The reported numbers show a mixed financial picture. Book value per common share increased to $12.64, up 13.8% year-over-year, and tangible book value per share rose 15.0% to $12.13, both indicating improved equity strength. Core consumer deposits surged by $951 million, or 124% year-over-year, and non-affiliate business deposits climbed 47%, supporting the company's narrative of deposit growth. Net interest income at the bank grew 56% year-over-year and 24% quarter-over-quarter, reflecting improved core banking profitability. However, basic EPS fell to $0.48 from $0.53, and ROAA declined to 1.97% from 2.58%, indicating weaker earnings performance. Loan origination volumes increased across all major categories, but the company is absorbing higher provision for credit losses at $12.1 million for the quarter. Most claims are supported by detailed, period-specific data, but some metrics—such as ROAE and ROTCE—are referenced without direct numerical support. Overall, the data points to operational growth but with profitability under pressure.

Analysis

The announcement is a standard quarterly financial disclosure, presenting realised results for the period ended June 30, 2026. The majority of claims are factual, backward-looking, and supported by specific numerical data, including net income, EPS, book value, deposit growth, and loan originations. Only a small fraction of statements are forward-looking, and these are limited to noting that guidance is being re-evaluated and that certain income items will be fully reflected in the next quarter. There is no promotional or exaggerated language, and no large capital outlay or long-dated benefit projections are present. The tone is measured and factual, with no evidence of narrative inflation or overstatement. The data supports a weak_positive signal due to the presence of both revenue and profitability metrics, but the absence of strong, sustained profit growth or transformative events keeps the signal from being strong_positive.

Risk flags

• ●Earnings quality is a concern: EPS and ROAA both declined year-over-year, despite strong growth in deposits and book value. This suggests that operational growth is not fully translating into higher profitability, which could signal margin compression or rising costs.
• ●Provision for credit losses is elevated at $12.1 million for the quarter, which may indicate emerging asset quality concerns or a more conservative stance on future loan performance. If credit trends worsen, this could further pressure earnings.
• ●Disclosure gaps exist: While most financial metrics are well-supported, key profitability ratios such as ROAE and ROTCE are referenced but not directly backed by numerical data in the release. This limits the ability to independently verify all aspects of the company's performance.
• ●Guidance uncertainty is explicit: The company states that its current guidance is being re-evaluated, which introduces short-term forecasting risk and suggests management may not have full visibility on near-term earnings trajectory.

Bottom line

NewtekOne's Q2 2026 results show robust deposit and book value growth, with core consumer deposits up 124% year-over-year and tangible book value per share up 15%. Loan origination volumes are rising, and net interest income at the bank is up 56% year-over-year, but these gains are not fully reflected in earnings, as EPS and ROAA both declined. The company is paying regular dividends, but a higher provision for credit losses and explicit uncertainty around future guidance highlight unresolved risks. Most operational metrics are well-documented, though some profitability ratios lack direct numerical support. Investors should treat the narrative as credible for operational growth, but the lack of forward guidance and weaker earnings mean the outlook is less certain. The most important takeaway is that while the balance sheet is strengthening, sustainable earnings growth remains unproven for now.

Announcement summary

(NASDAQ:NEWT) NewtekOne, Inc. reported basic and diluted earnings per share ("EPS") of $0.48 and $0.47 for the three months ended June 30, 2026 ("2Q26"), compared to $0.53 and $0.52 for the same period in 2025 ("2Q25"). Book value per common share ended 2Q26 at $12.64, up year-over-year (Y/Y) and quarter-over-quarter (Q/Q) by 13.8% and 2.3%, respectively, while tangible book value per common share ended 2Q26 at $12.13, up Y/Y and Q/Q by 15.0% and 2.4%, respectively. The efficiency ratio was 58.4% for 2Q26 compared to 60.3% for 2Q25, and return on average assets ("ROAA") was 1.97% for 2Q26 compared to 2.58% for 2Q25. Non-affiliate business deposits at Newtek Bank, N.A. increased $15 million, or 5% Q/Q, and $103 million, or 47% Y/Y, while core consumer deposits grew $297 million, or 21% Q/Q, and $951 million, or 124% Y/Y. The company originated $104 million of C&I LA Loans, $208 million of SBA 7(a) loans, and $49 million of SBA 504 loans in 2Q26. On July 1, 2026, the company paid a dividend on its outstanding Series B Preferred in the amount of $21.25 per Preferred Share, or $0.53125 per depositary share, and a quarterly cash dividend of $0.19 per share on its outstanding common shares. The company states that its current guidance going forward is being re-evaluated.

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