NewtekOne, Inc. (“the Company”) (NASDAQ: NEWT) announced today that
it reaffirmed its forecast to originate approximately $1.4 billion
in business loans in 2024 across all of its loan products including
SBA 7(a) loans, SBA 504 loans, alternative loan program loans, CRE
conforming loans, and C&I conforming loans. The Company
forecasts originating approximately $1.9 billion in business loans
across all its loan products in 2025, which would represent an
approximate 36% increase over its expectations for the 2024 total
business loan origination. Most of the 2025 loan origination growth
is expected from the alternative loan program, CRE conforming
loans, C&I conforming loans, and SBA 504 loans. It is important
to note that in the second quarter 2023, the Company ceased
originating its SBA 7(a) loans at Newtek Small Business Finance
(“NSBF”), the Company’s non-bank lender, and since that time all
SBA 7(a) loans have been originated by Newtek Bank, N.A. As a
result, the actual growth in SBA 7(a) originations should be viewed
as growth on a historical consolidated basis rather than just at
Newtek Bank, N.A. Given our 20-year history of originating SBA 7(a)
loans, we have always grown our loans prudently and reasonably in a
controlled, diversified manner.
The following table breaks down the full year 2024 and full year
2025 loan origination forecasts for each loan category, on a
consolidated basis, and the corresponding year-over-year forecasted
growth.
Loan Type |
FY 2024 Loan Origination Forecast |
FY 2025 Loan Origination Forecast |
Percentage Increase Full Year 2024 Loan Origination
Forecast vs. Full Year 2025 Loan Origination Forecast |
SBA 7(a) |
$ |
935.0 |
$ |
1,000.0 |
6.95% |
SBA 504 |
$ |
125.0 |
$ |
250.0 |
100.00% |
Alternative Loan Program Loans |
$ |
250.0 |
$ |
500.0 |
100.00% |
CRE Conforming Loans |
$ |
60.0 |
$ |
100.0 |
66.67% |
C&I Conforming Loans |
$ |
35.0 |
$ |
60.0 |
71.43% |
Total |
$ |
1,405.0 |
$ |
1,910.0 |
35.94% |
*Forecasts in millions |
|
|
|
|
|
|
|
Barry Sloane, President, Chairman and CEO said, “We are
extremely pleased with the progress we have made as we approach the
first two full years of operating our federally regulated bank
holding company, NewtekOne, Inc., and our OCC-regulated nationally
chartered bank, Newtek Bank N.A. We believe the economy continues
to be quite strong with only some pockets of weakness, which are
well within our loss expectations, however our success in
originating loans, both within the bank, funded by deposits, as
well as at the bank holding company, primarily funded by
securitizations and other secured debt, is part of our overall
strategy to provide a best-in-class loan solution to our clients
led by our alternative loan program, SBA 504, and SBA 7(a) loan
products. Through these three loan products, the bank holding
company provides features to borrowers, generally not available
from FDIC-insured regulated banking institutions. These features
include 10- to 25-year amortization schedules without balloon
payments to minimize monthly payments with elongated principal
repayment terms. Essentially, we are trading the longer
amortization periods without balloon payments for multiple personal
guarantees from business owners and operators. These guarantees are
not partial but full guarantees, and they are joint and several for
the principal and interest on the loan. Business owners and
guarantors are more than willing, with confidence, to personally
guarantee these business loans for the flexibility we give them
regarding dividend distribution, additional leverage, future
acquisitions, and financial reporting that are typical friction
points for borrowers with banks. For over two decades, we have had
experience enforcing personal guarantees and liquidating collateral
to recover amounts owed. On a consolidated basis, our loan
servicing portfolio is in excess of $3.5 billion, and we are an
S&P-rated servicer. We take personal guarantees and liens on
personal and business assets in our programs as a tradeoff for
limited to no covenants in our alternative loan program, SBA 7(a),
and SBA 504 products. Our 20 years of experience in lending gives
us a tremendous database and history in all types of economic
environments including high and low interest rate environments as
well as strong and weak economies, which enables us to
appropriately forecast what we believe our anticipated losses will
be on a go-forward basis.”
Mr. Sloane continued, “While some people refer to us as a
Fintech company, we tend to reject that nomenclature as our
organization thrives on people and process, while appropriately
utilizing technology to exchange data with the client in a
frictionless environment and enabling our internal staff to put
together loan assembly and credit memos quickly and effortlessly,
both of which, in turn, provide an enjoyable experience for our
clients. On any given day, NewtekOne receives between 600 to 900
business referrals from contracted alliance partners and has
accumulated approximately 2.5 million referrals in its database
over its 20-year operating history. Independent businesses come to
us for financing, and we provide the best solution for them with
one of our many financing programs, which include SBA 7(a), SBA
504, alternative loan program solutions, conforming standard bank
C&I loans, with full covenant packages due in three-to-five
years, and conforming commercial real estate loans, with typical
bank underwriting, balloon payments, lower margins, and lower
levels of expected losses. The conforming C&I loans and
conforming CRE loans will have lower expected losses and lower CECL
reserves, as a percentage of loan balance, at Newtek Bank versus
the SBA 7(a) product. This will give us a more diversified credit
exposure portfolio at Newtek Bank.”
Mr. Sloane further commented, “Some of the things that you can
anticipate going forward is a more diverse portfolio of loan types
at Newtek Bank, which was part of our original multi-year plan that
we submitted when applying to acquire National Bank of New York
City. Our over two decades of lending experience has demonstrated
that the best risk mitigation and management tools are led by
diversification of industry type, credit type, geography, and
diversified risk allocation. We are confident and look forward
to continuing to demonstrate that we can be the premier lender that
funds independent business owners in all 50 states, as well as
providing our alliance partners, that don’t typically make or
desire to make these types of loans, the ability to offer these
types of loan products and reap the benefits of satisfying their
customers’ needs using our frictionless client-acquisition and
loan- application processing from A-to-Z. Our product set provides
borrowers the flexibility and terms they desire to manage and run
their business and grow their risk-adjusted returns. It is truly
the only way to be able to provide loan products of the highest
quality to our existing and potential clients, which then drives
greater value to our shareholders and alliance partners. Simply
put, we are different than the typical fintech lender or commercial
financial institution that simply makes traditional loans with a
smaller menu of options. It is also important to note that in the
SBA 7(a) space, 75% of the loan originations are sold off the
balance sheet gains on sale are recorded. SBA 504 loan originations
in 2024 were also sold and gains on sale were recorded, so that the
balance sheet will not have the type of growth that a traditional
bank would have that holds these loans on its balance sheet with
this level of originations.”
Mr. Sloane concluded, “I believe it is important to reiterate
that our loans held at the holding company are valued at fair value
versus more traditional bank-holding-company accounting where loans
are carried at amortized cost, net of deferred fees and costs and
related credit loss reserves. Fair-value accounting has loss
expectations on a go-forward basis embedded in the price at fair
value. We will continue to provide additional disclosures to give
investors and analysts a better understanding that the Company
fully accounts for future losses and charge offs that it
anticipates based on its 20-years’ worth of experience as one of
the leading lenders to small business over its history. Lastly, we
are maintaining our annual common and diluted earnings per share
forecasts of $1.85 to $2.05 for 2024, and $2.00 to $2.25 for 2025.
We are excited about our full year 2024 earnings call to further
elaborate on the successes of 2024 and the excitement for our
projections in 2025.”
About NewtekOne, Inc.
NewtekOne®, Your Business Solutions Company®, is a financial
holding company, which along with its bank and non-bank
consolidated subsidiaries (collectively, “NewtekOne”), provides a
wide range of business and financial solutions under the Newtek®
brand to independent business owners. Since 1999, NewtekOne
has provided state-of-the-art, cost-efficient products and services
and efficient business strategies to independent business owners
across all 50 states to help them grow their sales, control their
expenses, and reduce their risk.
NewtekOne’s and its subsidiaries’ business and financial
solutions include: banking (Newtek Bank, N.A.), Business Lending,
SBA Lending Solutions, Electronic Payment Processing, Technology
Solutions (Cloud Computing, Data Backup, Storage and Retrieval, IT
Consulting), eCommerce, Accounts Receivable Financing &
Inventory Financing, Insurance Solutions, Web Services, and Payroll
and Benefits Solutions.
Newtek®, NewtekOne®, Newtek Bank®, National Association, Your
Business Solutions Company®, One Solution for All Your Business
Needs® and Newtek Advantage are registered trademarks of NewtekOne,
Inc.Note Regarding Forward-Looking StatementsCertain statements in
this press release are “forward-looking statements” within the
meaning of the rules and regulations of the Private Securities
Litigation and Reform Act of 1995 are based on the current beliefs
and expectations of NewtekOne's management and are subject to
significant risks and uncertainties. Actual results may differ from
those set forth in the forward-looking statements. See “Note
Regarding Forward-Looking Statements” and the sections entitled
“Risk Factors” in our filings with the Securities and Exchange
Commission which are available on NewtekOne's website
(https://investor.newtekbusinessservices.com/sec-filings) and on
the Securities and Exchange Commission’s website (www.sec.gov). Any
forward-looking statements made by or on behalf of NewtekOne speak
only as to the date they are made, and NewtekOne does not undertake
to update forward-looking statements to reflect the impact of
circumstances or events that arise after the date the
forward-looking statements were made.
SOURCE: NewtekOne, Inc.
Investor Relations & Public
RelationsContact: Jayne Cavuoto Telephone: (212) 273-8179
/ jcavuoto@newtekone.com
NewtekOne (NASDAQ:NEWT)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
NewtekOne (NASDAQ:NEWT)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024