Today NewtekOne, Inc. (“NewtekOne”) timely filed its annual report
on Form 10-K for the period ended December 31, 2023. The purpose of
this press release is to update and replace NewtekOne’s press
release dated March 5, 2024, which announced NewtekOne’s unaudited
fourth quarter and full year 2023 financial results.
NewtekOne, Inc. Reports Fourth Quarter
and Full Year 2023 Financial Results
Full Year 2023 Basic
Earnings per Share of $1.89 and Diluted Earnings per Share of
$1.88
NewtekOne, Inc. (Nasdaq: NEWT), announced today its audited
financial and operating results for the three and twelve months
ended December 31, 2023.
This is NewtekOne's fourth quarter reporting, and third full
quarter reporting, as a financial holding company following the
Company's January 6, 2023 completion of the acquisition of National
Bank of New York City ("NBNYC") (renamed Newtek Bank, N.A.) and the
withdrawal of NewtekOne's BDC election. NewtekOne now consolidates
the balance sheets and results of operations of its former
portfolio companies (now consolidated subsidiaries) and no longer
applies investment company accounting.
Barry Sloane, CEO, President and Chairman commented, “We are
pleased to report our first full year as a financial holding
company owning Newtek Bank, a nationally chartered bank. We
achieved basic earnings per share (EPS) of $1.89 and diluted EPS of
$1.88. We believe that we can achieve EPS growth in today’s
environment, given the majority of our net revenue is
non-interest-bearing, making our business model unique and
valuable. For the full year 2023, Newtek Bank realized return on
average assets ("ROAA") of 5.7%, return on tangible common equity
("ROTCE") of 35.7%, and an efficiency ratio of 49.9%. NewtekOne,
Newtek Bank's financial holding company, realized ROAA of 3.6%, and
ROTCE of 27.6%1. We believe these metrics clearly depict a thriving
business; one that serves independent business owners in all 50
states and that is well positioned for financial and operational
growth in future quarters, demonstrated by our expanding net
interest margin. Our operating structure does not use branches,
traditional bankers, brokers, or business development officers to
source business opportunities, and instead, relies upon the
patented NewTracker(R) system which generates approximately 1,000
unique business referrals each day. Unlike other financial holding
companies, we have been able to expand our business during these
difficult times in the banking sector, which we attribute to our
unique and time-tested business model that utilizes technology to
minimize or eliminate the concept of traditional bankers, brokers,
branches and business development officers. With NewtekOne’s common
equity Tier 1 capital (CET1) ratio of 16.2%, total capital ratio of
19.1%, and 13.6% leverage ratio, we believe we have the equity to
continue to grow our business, pay an attractive market dividend
and grow retaining earnings.”
Mr. Sloane continued, “With 2023 behind us, we can look back
with pride over the year’s multiple accomplishments and building a
strong foundation for our future. The conversion from a BDC to a
financial holding company resulted in the Company no longer
qualifying as a regulated investment company (RIC) for federal
income tax purposes and no longer qualifying for accounting
treatment as an investment company. Accordingly, we believe prior
year and year-over-year comparisons are difficult and it is
important to analyze many of our financial metrics on a
quarter-over-quarter sequential basis. Additionally, when analyzing
NewtekOne, we also believe it is important to consider our
time-tested, differentiated business model which has provided
multiple streams of income from its lines of business. These
changes came with many operational and accounting challenges. We
are on a path to realizing our goal of being recognized as the
premier business and financial solutions provider for independent
business owners in the U.S. By purchasing a nationally chartered
bank, we were able to add depository services to our already-robust
menu of high-quality business and financial solutions that we
believe can enable our clients to operate at a higher level. Most
of our clients go to their depository institutions multiple times
per week or month. Extremely important to note is that our
conversion to a bank holding company in no way implies that
NewtekOne and Newtek Bank will look like or operate like the
universe of traditional bank holding companies or banks. As a
result, we do not think we should be valued like a traditional
bank, as our business model offers our investors more than net
interest income, and therefore, we believe should garner distinct
valuation compared to the universe of traditional banks. We also
value this non-interest income as reoccurring income. We firmly
believe that our business model can be executed with prudent risk
management practices while servicing our clients with multiple
solutions that can enhance their business and commercial endeavors.
Our operating metrics are built on growth objectives with respect
to ROA, ROE, and efficiency ratios, which we believe is distinct
from the asset-growth strategies of the traditional banking
industry."
NewtekOne Fourth Quarter 2023 Financial
Highlight
As noted above, we believe it is important to analyze many of
our financial metrics on a quarter-over-quarter sequential
basis:
- Net income was $10.8 million, or $0.43 per basic and diluted
common share, for the three months ended December 31, 2023,
compared to net income of $10.9 million, or $0.43 per basic and
diluted common share, for the three months ended September 30,
2023.
- Net interest income was $8.3 million for the three months ended
December 31, 2023; an increase of 2.5% over $8.1 million for the
three months ended September 30, 2023.
- Total assets were $1.4 billion at December 31, 2023, which
remained relatively consistent to the balance at September 30,
2023.
- Total borrowings were $644.1 million at December 31, 2023; a
decrease of 0.7% from $648.7 million at September 30, 2023.
- Loans held for investment were $806.1 million at December 31,
2023; an increase of 4.1% over $774.6 million at September 30,
2023.
- Cash and cash equivalents were $184.0 million, including $30.9
million of restricted cash, at December 31, 2023; a decrease of
17.7% from to $223.7 million, including $71.7 million of restricted
cash, at September 30, 2023.
- Net interest margin2 was 2.76% for the three months ended
December 31, 2023; an increase of 6.2% over 2.60% for the three
months ended September 30, 2023.
- ROTCE of 25.7% for the three months ended December 31, 2023; an
increase of 23.6% over 20.8% for the three months ended September
30, 2023.
- ROAA1,2 of 3.1% for the three months ended December 31, 2023;
an increase of 3.3% over 3.0% for the three months ended September
30, 2023.
- Efficiency ratio2 of 66.6% for the three months ended December
31, 2023; an increase of 4.4% compared to 63.8% for the three
months ended September 30, 2023.
- Total risk-based capital ratio2 was 19.1% at December 31, 2023;
an increase of 7.9% over 17.7% at September 30, 2023.
- Tier-1 leverage ratio2 was 13.6% at December 31, 2023; a
decrease of 6.8% compared to 14.6% at September 30, 2023.
- On January 12, 2024, the Company paid its fourth quarterly
cash dividend as a financial holding company of $0.18 per share to
shareholders of record as of December 29, 2023.
- The Company is forecasting full year 2024 EPS in a range of
$1.80 to $2.00 per basic and diluted common share and intends to
update this forecast when it releases its first quarter 2024
financial results.
NewtekOne Financial Highlights Twelve Months Ended
December 31, 2023
- Net income was $47.3 million, or $1.89 per basic common share
and $1.88 per diluted common share, for the twelve months ended
December 31, 2023.
- Net interest income was $26.6 million for the twelve months
ended December 31, 2023.
Newtek Bank, N.A.
- Total deposits were $463.5 million at December 31, 2023, which
represents a 227.3% increase in deposits, compared to $141.6
million in deposits at NBNYC at December 31, 2022.
- Insured deposits represented approximately 85.8% of total
deposits at December 31, 2023.
- Net interest margin2 was 4.43% for the three months ended
December 31, 2023; an increase of 26.9% over 3.49% for the three
months ended September 30, 2023.
- ROTCE1,2 of 66.3% for the three months ended December 31, 2023;
an increase of 50.7% over 44.0% for the three months ended
September 30, 2023.
- ROAA1,2 of 9.9% for the three months ended December 31, 2023;
an increase of 65.0% over 6.0% for the three months ended September
30, 2023.
- Efficiency ratio1,2 of 34.4% for the three months ended
December 31, 2023; a decrease of 14.6% compared to 40.3% for the
three months ended September 30, 2023.
- Total risk-based capital ratio2 was 22.8% at December 31, 2023,
a decrease of 8.8% from 25.0% at September 30, 2023.
- Tier-1 leverage ratio2 was 16.6% at December 31, 2023; an
increase of 11.4% from 14.9% at September 30, 2023.
______________
1 Non-GAAP; reconciliations of non-GAAP financial measures to
the most comparable GAAP measures are set forth on the last page of
the financial information accompanying this press release.
2 Assets under supervision, capital ratios, risk-weighted assets
and supplementary leverage ratio are preliminary data and subject
to change prior to any filings with regulatory agencies and the
filing of our Form 10-K for the year ended December 31, 2023.
Lending Highlights
- In April 2023, the Company began funding SBA 7(a) loans out of
Newtek Bank with Preferred Lender Program (PLP) status.
- Total SBA 7(a) loan fundings of $260.7 million for the
three months ended December 31, 2023; an increase of 24.2% over
$209.9 million of SBA 7(a) loans funded for the three months
ended September 30, 2023.
- Total SBA 7(a) loan fundings of $815.0 million for the
twelve months ended December 31, 2023.
- The Company forecasts $925.0 million in total SBA 7(a)
loan fundings for 2024, which would represent a 13.5% increase over
2023.
- Newtek Bank closed $60.5 million of SBA 504 loans for the
three months ended December 31, 2023; an increase of 241.8% over
$17.7 million SBA 504 loans closed for the three months ended
September 30, 2023.
- Total SBA 504 loan closings of $142.9 million for the
twelve months ended December 31, 2023.
- Newtek Bank and the Company’s non-bank subsidiaries closed a
record$1.1 billion of loans, across all loan products, for the
twelve months ended December 31, 2023, compared to
$923.8 million of loans closed by NewtekOne, its subsidiaries
and portfolio companies for the same period in 2022.
The Company’s 2023 prior-period comparative financial statements
have been adjusted to correct errors made in the Company’s
condensed financial statements previously issued in the first,
second, and third quarters of 2023. Amounts referenced in this
press release refer to results on an "As Adjusted" basis unless
otherwise noted. Specifically, as set forth in the "Summary of
Revisions to Prior Period Financial Statements," annexed hereto,
which revises certain line items in the Company’s condensed
financial information for the first, second, and third quarters of
2023 as previously reported, the Company’s: (i) year-to-date EPS
(basic and diluted) reflects an increase of $0.36 per share and
$0.36 per share, respectively; (ii) year-to-date Net Income
reflects an increase of $7.9 million; and (iii) Total Assets
reflects an increase of $15.3 million. The increases in Total
Assets was primarily driven by the recognition of net deferred tax
assets and income tax receivables as well as intangible assets. The
increases in Net Income resulted principally from the after-tax
impact of the recognition of servicing assets at Newtek Bank, and
the recognition of deferred loan origination costs, net, in
connection with accounting for loans originated by Newtek Bank. The
revised calculations of EPS are attributed to application of the
treasury stock and if-converted methods, as well as revisions to
the allocation of undistributed earnings to preferred stock under
the two class method, in conjunction with other adjustments to net
income. The Company's management continues to assess the
effectiveness of the Company’s internal controls over financial
reporting (“ICFR”), including any deficiencies in ICFR which led to
these accounting errors.
Continuing, Mr. Sloane said, “The goal of owning a nationally
chartered bank was driven by recognizing that our client base
communicates with their bank digitally with high frequency, so the
opportunity and our ability to communicate with our clients through
our Newtek Advantage® platform, and assist them on a daily basis to
become part of their operating ecosystem, has been our goal and is
now closer to reality. We have witnessed the customer traffic to
Newtekone.com and Newtekbank.com increase to approximately 18,000
unique digital visitors per month, providing our customers with the
opportunity to access the Newtek Advantage®, communicate with us,
and see all we have to offer. We seek to employ the most
cutting-edge technology and AI in order to enhance the client
experience, improve work flow processes, and acquire clients in an
environment that has less friction and higher levels of business
satisfaction.”
Mr. Sloane concluded, “We spent a good part of 2023 building out
our bank infrastructure, continuing to hire top-quality executives
and establishing additional policies and procedures, all at a great
expense, an investment we believe will provide a great return in
the future. Obviously, the investment and upfront expense is to
better enable us to safely and soundly grow our business, and
develop a lasting infrastructure. Also important to note, is that
we have been able to grow our loan-loss reserves dramatically
during our first twelve months of operations ending December 31,
2023. We ended 2023 with a 3.7% loan loss reserve to loans held for
investment, and we expect to prudently manage credit risk and
related reserves as the future conditions of the economy take
shape.”
This earnings release should be read in conjunction with
NewtekOne's annual report on Form 10-K for the period ended
December 31, 2023, filed with the SEC on April 1, 2024.
Note Regarding Dividend Payments
Amount and timing of dividends, if any, remain subject to the
discretion of the Company's Board of Directors.
NewtekOne®, Your Business Solutions Company®, is a financial
holding company, which along with its bank and non-bank
consolidated subsidiaries, provides a wide range of business and
financial solutions under the Newtek® brand to the small- and
medium-sized business (“SMB”) market. Since 1999, NewtekOne has
provided state-of-the-art, cost-efficient products and services and
efficient business strategies to SMB relationships 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
AssociationTM, Your Business Solutions Company®, Newtek Advantage®
and One Solution for All Your Business Needs® 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. Information regarding the Company’s assets under supervision,
capital ratios, risk-weighted assets, supplementary leverage ratio
and balance sheet data consists of preliminary estimates and are
subject to change prior to any filings with regulatory agencies and
filing of the Company's Form 10-K for the period ended December 31,
2023. These statements and other forward-looking statements herein
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. In addition, earnings per share
guidance reflects risks, uncertainties and assumptions with respect
to facts and circumstances that are beyond our control, in
particular concerning interest rates, monetary policy and
prevailing economic conditions (including the impacts from a
government shutdown ) during the relevant periods, any of which may
differ significantly from our assumptions about the applicable
period, causing our actual operating results, including our
earnings per share, to differ materially from the stated guidance.
See “Note Regarding Forward-Looking Statements” and the sections
entitled “Risk Factors” in our filings with the Securities and
Exchange Commission 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
Summary of Revisions to Prior Period Consolidated
Financial Statements
As of January 6, 2023, the Company is no longer
subject to Financial Accounting Standard Board Accounting Standards
Codification (FASB) Topic (ASC) 946 Financial Services – Investment
Companies, which resulted in a significant change in the Company’s
accounting and financial reporting requirements for the year ended
December 31, 2023. For example, the Company is required to
consolidate the financial statements of what was previously
referred to as our controlled or majority-owned investments
together with those already consolidated by the Company. In
accordance with ASC 946, prior to January 6, 2023, the Company was
required to account for investments, loans and other receivables at
fair value. For fiscal year ended December 31, 2023, the Company is
now required to account for debt securities under ASC 320, loans
and other receivables, including modifications and restructurings
under ASC 310, and must apply the current expected credit loss
model to each of these financial instruments under ASC 326.
Additionally, management continues to elect the fair value option
of accounting under ASC 825 for certain financial instruments.
Finally, as a result of the conversion, the Company no longer
qualifies as a RIC for federal income tax purposes, and no longer
qualifies for accounting treatment as an investment company,
therefore management has been required to expend significant
efforts in order to implement these changes in accounting and
financial reporting requirements.
The Company’s condensed comparative financial
statements have been adjusted to correct errors made in the
Company’s financial statements previously issued for the first,
second, and third quarters of 2023. These adjustments include the
following adjustments for the year-to-date period ended September
30, 2023:
- Accounting for deferred loan
origination fees and costs, net, under ASC 310 resulting for the
year-to-date period ended September 30, 2023, in (a) a
$5.1 million and $5.7 million decrease in non-interest
income and non-interest expense, respectively, and (b) net
increases to pretax income of $0.6 million (the Company was
not applying the standard to its SBA 7(a) HFI at amortized cost or
to its SBA 504 HFS at LCM portfolios);
- Calculating EPS under ASC 260 (a)
exclude stock compensation awards from average basic shares
outstanding and (b) adjust average diluted shares to reflect the
(i) treasury stock method for stock compensation awards and
warrants and (ii) the if-converted method for preferred stock and
(c) adjusting the allocation under the two-class method to align
with the contractual limitations for preferred stock, all of which
result in quarterly increases per share for both basic and diluted
EPS for the first three quarters of 2023;
- Establishing net deferred net tax
assets and income taxes receivable under ASC 740 in conjunction
with the common control transaction, as of January 6, 2023,
specifically to recognize (a) the book tax differences on the
inside basis of the assets and liabilities that were consolidated
as of that date (b) net amounts receivable from tax authorities and
(c) deferred tax assets arising from a change in taxpayer filing
status in conjunction with the Reorganization, all of which
resulted in increased net deferred tax assets and income taxes
receivable of $10.0 million and an increase to additional paid
in capital of $2.9 million and an income tax benefit of
$7.1 million. The results of these adjustments impacted period
end balances on the statements of financial condition and
year-to-date amounts on the statements of income for each period
presented;
- Establishing certain servicing
assets under ASC 860 in conjunction with the common control
transaction and servicing assets that stemmed from loan
originations that occurred following January 6, 2023, resulting in
a $1.0 million increase in non-interest income and a $1.5 million
increase in servicing assets; and
- An adjusting opening balance sheet
entry in conjunction with common control transaction to correct (a)
net understatements of goodwill and intangibles and stockholders’
equity resulting in respective increases of $3.9 million and (b)
amortization of intangible assets.
The year-to-date and quarterly impact of these
adjustments for the periods presented are outlined in the unaudited
tables below.
|
|
|
NewtekOne, Inc. and
SubsidiariesConsolidated Statements of Financial
Condition (Unaudited)As of the Period Ended: |
| |
|
|
|
|
|
| (in
thousands) |
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
| |
As Reported1 |
Adjustment |
As Adjusted |
|
As Reported1 |
Adjustment |
As Adjusted |
|
As Reported1 |
Adjustment |
As Adjusted |
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Total cash and cash equivalents |
$ |
223,692 |
$ |
— |
$ |
223,692 |
|
$ |
256,333 |
$ |
— |
$ |
256,333 |
|
$ |
197,143 |
$ |
— |
$ |
197,143 |
| Goodwill &
intangibles |
|
27,157 |
|
4,154 |
|
31,311 |
|
|
27,595 |
|
4,072 |
|
31,667 |
|
|
28,101 |
|
3,990 |
|
32,091 |
| Servicing assets |
|
36,774 |
|
1,517 |
|
38,291 |
|
|
35,754 |
|
484 |
|
36,238 |
|
|
33,351 |
|
328 |
|
33,679 |
| Loans held for investment, at
amortized cost, net1 |
|
272,725 |
|
653 |
|
273,378 |
|
|
213,501 |
|
294 |
|
213,795 |
|
|
164,639 |
|
9 |
|
164,648 |
| Deferred tax asset, net |
|
8,656 |
|
7,599 |
|
16,255 |
|
|
4,622 |
|
8,005 |
|
12,627 |
|
|
4,706 |
|
8,120 |
|
12,826 |
| Other assets |
|
48,430 |
|
1,418 |
|
49,848 |
|
|
46,670 |
|
1,541 |
|
48,211 |
|
|
49,850 |
|
1,629 |
|
51,479 |
| All other assets |
|
760,720 |
|
— |
|
760,720 |
|
|
852,150 |
|
— |
|
852,150 |
|
|
767,933 |
|
— |
|
767,933 |
| Total
assets |
$ |
1,378,154 |
$ |
15,341 |
$ |
1,393,495 |
|
$ |
1,436,625 |
$ |
14,396 |
$ |
1,451,021 |
|
$ |
1,245,723 |
$ |
14,076 |
$ |
1,259,799 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Deposits |
|
432,559 |
|
— |
|
432,559 |
|
|
447,357 |
|
— |
|
447,357 |
|
|
247,574 |
|
— |
|
247,574 |
| Accounts payable, accrued
expenses and other liabilities |
|
36,509 |
|
162 |
|
36,671 |
|
|
37,512 |
|
162 |
|
37,674 |
|
|
44,912 |
|
— |
|
44,912 |
| All other liabilities |
|
682,063 |
|
— |
|
682,063 |
|
|
730,541 |
|
|
730,541 |
|
|
734,727 |
|
— |
|
734,727 |
| Total liabilities |
$ |
1,151,131 |
$ |
162 |
$ |
1,151,293 |
|
$ |
1,215,410 |
$ |
162 |
$ |
1,215,572 |
|
$ |
1,027,213 |
$ |
— |
$ |
1,027,213 |
| Total shareholders’
equity |
|
227,023 |
|
15,179 |
|
242,202 |
|
|
221,215 |
|
14,234 |
|
235,449 |
|
|
218,510 |
|
14,076 |
|
232,586 |
| Total Liabilities
& Shareholders Equity |
$ |
1,378,154 |
|
15,341 |
|
1,393,495 |
|
|
1,436,625 |
|
14,396 |
|
1,451,021 |
|
|
1,245,723 |
|
14,076 |
|
1,259,799 |
1Certain amounts labeled "As Reported" have been reclassified to
conform to current period presentation.
| |
|
NewtekOne, Inc. and
SubsidiariesConsolidated Statement of Income
(Unaudited)(In Thousands, except for Per Share
Data) |
| |
|
|
|
|
|
| |
For the nine months ended |
|
For the six months ended |
|
For the three months ended |
| |
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
| |
As Reported1 |
Adjustment |
As Adjusted |
|
As Reported1 |
Adjustment |
As Adjusted |
|
As Reported1 |
Adjustment |
As Adjusted |
|
Net interest income |
$ |
18,333 |
$ |
— |
|
$ |
18,333 |
|
|
$ |
10,256 |
|
$ |
— |
|
$ |
10,256 |
|
|
$ |
4,583 |
|
$ |
— |
|
$ |
4,583 |
|
| Provision for credit
losses |
|
7,339 |
|
— |
|
|
7,339 |
|
|
|
3,893 |
|
|
— |
|
|
3,893 |
|
|
|
1,318 |
|
|
— |
|
|
1,318 |
|
| Noninterest income |
|
132,113 |
|
(4,448 |
) |
|
127,665 |
|
|
|
89,215 |
|
|
(2,574 |
) |
|
86,641 |
|
|
|
42,787 |
|
|
(431 |
) |
|
42,356 |
|
| Noninterest expense |
|
113,891 |
|
(5,771 |
) |
|
108,120 |
|
|
|
79,346 |
|
|
(2,546 |
) |
|
76,800 |
|
|
|
39,197 |
|
|
(174 |
) |
|
39,023 |
|
| Income tax expense
(benefit) |
|
671 |
|
(6,612 |
) |
|
(5,941 |
) |
|
|
(2,339 |
) |
|
(7,018 |
) |
|
(9,357 |
) |
|
|
(4,863 |
) |
|
(7,089 |
) |
|
(11,952 |
) |
| Net
income |
$ |
28,545 |
$ |
7,935 |
|
$ |
36,480 |
|
|
$ |
18,571 |
|
$ |
6,990 |
|
$ |
25,561 |
|
|
$ |
11,718 |
|
$ |
6,832 |
|
$ |
18,550 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Weighted average
number of shares outstanding |
|
|
|
|
|
|
|
|
| Basic |
|
24,626 |
|
(371 |
) |
|
24,255 |
|
|
|
24,608 |
|
|
(364 |
) |
|
24,244 |
|
|
|
24,609 |
|
|
(386 |
) |
|
24,223 |
|
| Diluted |
|
24,626 |
|
(290 |
) |
|
24,336 |
|
|
|
25,423 |
|
|
(1,125 |
) |
|
24,298 |
|
|
|
25,237 |
|
|
(356 |
) |
|
24,881 |
|
| Earnings (loss) per common
share |
|
|
|
|
|
|
|
|
|
|
|
| Basic |
$ |
1.10 |
$ |
0.36 |
|
$ |
1.46 |
|
|
$ |
0.72 |
|
$ |
0.31 |
|
$ |
1.03 |
|
|
$ |
0.46 |
|
$ |
0.30 |
|
$ |
0.76 |
|
| Diluted |
$ |
1.10 |
$ |
0.36 |
|
$ |
1.46 |
|
|
$ |
0.72 |
|
$ |
0.31 |
|
$ |
1.03 |
|
|
$ |
0.46 |
|
$ |
0.28 |
|
$ |
0.74 |
|
| |
|
For the three months ended |
|
For the three months ended |
|
For the three months ended |
| |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
|
|
As Reported1 |
Adjustment |
As Adjusted |
|
As Reported1 |
Adjustment |
As Adjusted |
|
As Reported1 |
Adjustment |
As Adjusted |
|
Net interest income |
|
$ |
8,077 |
$ |
— |
|
$ |
8,077 |
|
$ |
5,673 |
$ |
— |
|
$ |
5,673 |
|
$ |
4,583 |
|
$ |
— |
|
$ |
4,583 |
|
| Provision for credit
losses |
|
|
3,446 |
|
— |
|
|
3,446 |
|
|
2,575 |
|
— |
|
|
2,575 |
|
|
1,318 |
|
|
— |
|
|
1,318 |
|
| Noninterest income |
|
|
42,900 |
|
(1,876 |
) |
|
41,024 |
|
|
46,428 |
|
(2,143 |
) |
|
44,285 |
|
|
42,787 |
|
|
(431 |
) |
|
42,356 |
|
| Noninterest expense |
|
|
34,545 |
|
(3,225 |
) |
|
31,320 |
|
|
40,149 |
|
(2,372 |
) |
|
37,777 |
|
|
39,197 |
|
|
(174 |
) |
|
39,023 |
|
| Income tax expense
(benefit) |
|
|
3,011 |
|
405 |
|
|
3,416 |
|
|
2,524 |
|
71 |
|
|
2,595 |
|
|
(4,863 |
) |
|
(7,089 |
) |
|
(11,952 |
) |
| Net
income |
|
$ |
9,975 |
$ |
944 |
|
$ |
10,919 |
|
$ |
6,853 |
$ |
158 |
|
$ |
7,011 |
|
$ |
11,718 |
|
$ |
6,832 |
|
$ |
18,550 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average
number of shares outstanding |
|
|
|
|
|
|
|
|
| Basic |
|
|
24,663 |
|
(386 |
) |
|
24,277 |
|
|
24,607 |
|
(343 |
) |
|
24,264 |
|
|
24,609 |
|
|
(386 |
) |
|
24,223 |
|
| Diluted |
|
|
24,663 |
|
(250 |
) |
|
24,413 |
|
|
25,588 |
|
(1,282 |
) |
|
24,306 |
|
|
25,237 |
|
|
(356 |
) |
|
24,881 |
|
| Earnings (loss) per common
share |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.38 |
$ |
0.05 |
|
$ |
0.43 |
|
$ |
0.26 |
$ |
0.01 |
|
$ |
0.27 |
|
$ |
0.46 |
|
$ |
0.30 |
|
$ |
0.76 |
|
| Diluted |
|
$ |
0.38 |
$ |
0.05 |
|
$ |
0.43 |
|
$ |
0.26 |
$ |
0.01 |
|
$ |
0.27 |
|
$ |
0.46 |
|
$ |
0.28 |
|
$ |
0.74 |
|
1Certain amounts labeled "As Reported" have been
reclassified to conform to current period presentation.
|
|
|
NEWTEKONE, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION(In Thousands, except for Per Share
Data) |
| |
December 31, 2023 |
|
December 31, 2022 |
|
ASSETS |
Financial Holding Company |
|
Investment Company1 |
|
Cash and due from banks |
$ |
15,398 |
|
|
$ |
53,692 |
|
|
Restricted cash |
|
30,919 |
|
|
|
71,914 |
|
|
Interest bearing deposits in banks |
|
137,689 |
|
|
|
— |
|
|
Total cash and cash equivalents |
|
184,006 |
|
|
|
125,606 |
|
|
Debt securities available-for-sale, at fair value |
|
32,171 |
|
|
|
— |
|
|
Loans held for sale, at fair value |
|
118,867 |
|
|
|
19,171 |
|
|
Loans held for sale, at LCM |
|
56,607 |
|
|
|
— |
|
|
Loans held for investment, at fair value |
|
469,801 |
|
|
|
505,268 |
|
|
Loans held for investment, at amortized cost, net of deferred fees
and costs |
|
336,305 |
|
|
|
— |
|
|
Allowance for credit losses |
|
(12,574 |
) |
|
|
— |
|
|
Loans held for investment, at amortized cost, net |
|
323,731 |
|
|
|
— |
|
|
Federal Home Loan Bank and Federal Reserve Bank stock |
|
3,635 |
|
|
|
— |
|
|
Settlement receivable |
|
62,230 |
|
|
|
— |
|
|
Joint ventures, at fair value (cost of $37,864 and $23,314),
respectively |
|
40,859 |
|
|
|
23,022 |
|
|
Controlled investments (cost of $0 and $131,495), respectively |
|
— |
|
|
|
259,217 |
|
|
Non-control investments (cost of $796 and $1,360),
respectively |
|
728 |
|
|
|
1,360 |
|
|
Goodwill and intangibles |
|
30,120 |
|
|
|
— |
|
|
Right of use assets |
|
5,701 |
|
|
|
6,484 |
|
|
Deferred tax asset, net |
|
5,230 |
|
|
|
— |
|
|
Servicing assets |
|
39,725 |
|
|
|
30,268 |
|
|
Other assets |
|
56,102 |
|
|
|
28,506 |
|
|
Total assets |
$ |
1,429,513 |
|
|
$ |
998,902 |
|
| |
|
|
|
|
LIABILITIES AND NET ASSETS |
|
|
|
| Liabilities: |
|
|
|
|
Deposits: |
|
|
|
|
Noninterest-bearing |
$ |
10,053 |
|
|
$ |
— |
|
|
Interest-bearing |
|
453,452 |
|
|
|
— |
|
|
Total deposits |
|
463,505 |
|
|
|
— |
|
|
Borrowings |
|
644,122 |
|
|
|
539,326 |
|
|
Dividends payable |
|
4,792 |
|
|
|
— |
|
|
Lease liabilities |
|
6,952 |
|
|
|
7,973 |
|
|
Deferred tax liabilities, net |
|
— |
|
|
|
19,194 |
|
|
Due to participants |
|
23,796 |
|
|
|
35,627 |
|
|
Accounts payable, accrued expenses and other liabilities |
|
37,300 |
|
|
|
21,424 |
|
|
Total liabilities |
|
1,180,467 |
|
|
|
623,544 |
|
| |
|
|
|
|
Shareholders' Equity: |
|
|
|
|
Preferred stock (par value $0.02 per share; authorized 20 shares,
20 and 20 shares issued and outstanding, respectively) |
|
19,738 |
|
|
|
— |
|
|
Common stock (par value $0.02 per share; authorized 200,000 shares,
24,680 and 24,609 issued and outstanding, respectively) |
|
492 |
|
|
|
492 |
|
|
Additional paid-in capital |
|
200,913 |
|
|
|
354,243 |
|
|
Retained earnings |
|
28,051 |
|
|
|
20,623 |
|
|
Accumulated other comprehensive loss, net of income taxes |
|
(148 |
) |
|
|
— |
|
|
Total shareholders' equity |
|
249,046 |
|
|
|
375,358 |
|
|
Total liabilities and shareholders' equity |
$ |
1,429,513 |
|
|
$ |
998,902 |
|
1The Company’s financial statements as of December 31, 2022,
are, and in previous years were, presented and accounted for under
the specialized method of accounting applicable to investment
companies and excluded many of our consolidated subsidiaries, which
were previously treated as portfolio company investments.
|
|
|
NEWTEKONE, INC. AND SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF INCOME |
|
(In Thousands, except for Per Share Data) |
| |
|
|
|
| |
Year Ended December 31, |
| |
2023Financial Holding
Company |
|
2022Investment
Company1 |
|
2021Investment
Company1 |
| Interest
income |
|
|
|
|
|
|
Debt securities available-for-sale |
$ |
1,518 |
|
|
$ |
— |
|
|
$ |
— |
|
|
Loans and fees on loans |
|
84,001 |
|
|
|
35,696 |
|
|
|
25,951 |
|
|
Loans and fees on loans - PPP loans |
|
— |
|
|
|
— |
|
|
|
49,989 |
|
|
Interest from affiliates |
|
— |
|
|
|
2,921 |
|
|
|
3,026 |
|
|
Other interest earning assets |
|
8,854 |
|
|
|
— |
|
|
|
— |
|
|
Total interest income |
|
94,373 |
|
|
|
38,617 |
|
|
|
78,966 |
|
| Interest
expense |
|
|
|
|
|
|
Deposits |
|
15,849 |
|
|
|
— |
|
|
|
— |
|
|
Notes and securitizations |
|
40,217 |
|
|
|
21,780 |
|
|
|
18,591 |
|
|
Bank and FHLB borrowings |
|
11,673 |
|
|
|
3,998 |
|
|
|
1,536 |
|
|
Notes payable related party |
|
— |
|
|
|
547 |
|
|
|
388 |
|
|
Total interest expense |
|
67,739 |
|
|
|
26,325 |
|
|
|
20,515 |
|
|
Net interest income |
|
26,634 |
|
|
|
12,292 |
|
|
|
58,451 |
|
|
Provision for credit losses |
|
11,704 |
|
|
|
— |
|
|
|
— |
|
|
Net interest income after provision for credit losses |
|
14,930 |
|
|
|
12,292 |
|
|
|
58,451 |
|
| Noninterest
income |
|
|
|
|
|
|
Dividend income |
|
1,757 |
|
|
|
24,657 |
|
|
|
9,896 |
|
|
Loan servicing asset revaluation |
|
(3,549 |
) |
|
|
(10,095 |
) |
|
|
(6,778 |
) |
|
Servicing income |
|
18,289 |
|
|
|
13,698 |
|
|
|
11,307 |
|
|
Net gains on sales of loans |
|
50,734 |
|
|
|
56,901 |
|
|
|
53,113 |
|
|
Net gain (loss) on loans under the fair value option |
|
18,008 |
|
|
|
(26,504 |
) |
|
|
11,477 |
|
|
Technology and IT support income |
|
24,916 |
|
|
|
— |
|
|
|
— |
|
|
Electronic payment processing income |
|
42,855 |
|
|
|
— |
|
|
|
— |
|
|
Other noninterest income |
|
23,762 |
|
|
|
34,221 |
|
|
|
10,295 |
|
|
Total noninterest income |
|
176,772 |
|
|
|
92,878 |
|
|
|
89,310 |
|
| Noninterest
expense |
|
|
|
|
|
|
Salaries and employee benefits expense |
|
65,708 |
|
|
|
20,186 |
|
|
|
17,866 |
|
|
Technology services expense |
|
14,272 |
|
|
|
— |
|
|
|
— |
|
|
Electronic payment processing expense |
|
18,327 |
|
|
|
— |
|
|
|
— |
|
|
Professional services expense |
|
13,077 |
|
|
|
7,134 |
|
|
|
5,610 |
|
|
Other loan origination and maintenance expense |
|
9,433 |
|
|
|
30,746 |
|
|
|
29,506 |
|
|
Depreciation and amortization |
|
2,884 |
|
|
|
239 |
|
|
|
304 |
|
|
Loss on extinguishment of debt |
|
271 |
|
|
|
417 |
|
|
|
1,552 |
|
|
Other general and administrative costs |
|
22,357 |
|
|
|
7,673 |
|
|
|
7,454 |
|
|
Total noninterest expense |
|
146,329 |
|
|
|
66,395 |
|
|
|
62,292 |
|
| Net income before
taxes |
|
45,373 |
|
|
|
38,775 |
|
|
|
85,469 |
|
| Income tax expense
(benefit) |
|
(1,956 |
) |
|
|
6,464 |
|
|
|
1,327 |
|
|
Net income |
|
47,329 |
|
|
|
32,311 |
|
|
|
84,142 |
|
| Dividends to preferred
shareholders |
|
(1,454 |
) |
|
|
— |
|
|
|
— |
|
| Net income available to common
shareholders |
$ |
45,875 |
|
|
$ |
32,311 |
|
|
$ |
84,142 |
|
| |
|
|
|
|
|
| Earnings per
share: |
|
|
|
|
|
| Basic |
$ |
1.89 |
|
|
$ |
1.34 |
|
|
$ |
3.69 |
|
| Diluted |
$ |
1.88 |
|
|
$ |
1.34 |
|
|
$ |
3.69 |
|
1The Company’s financial statements as of December 31, 2022,
are, and in previous years were, presented and accounted for under
the specialized method of accounting applicable to investment
companies and excluded many of our consolidated subsidiaries, which
were previously treated as portfolio company investments.
|
|
|
NEWTEKONE, INC. AND SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF INCOME |
|
(In Thousands, except for Per Share Data) |
| |
|
|
|
| |
Three Months Ended December 31, |
| |
2023Financial Holding
Company |
|
2022Investment
Company1 |
|
2021Investment
Company1 |
| Interest
income |
|
|
|
|
|
|
Debt securities available-for-sale |
$ |
435 |
|
|
$ |
— |
|
|
$ |
— |
|
|
Loans and fees on loans |
|
23,660 |
|
|
|
11,781 |
|
|
|
6,623 |
|
|
Loans and fees on loans - PPP loans |
|
— |
|
|
|
— |
|
|
|
— |
|
|
Interest from affiliates |
|
— |
|
|
|
834 |
|
|
|
895 |
|
|
Other interest earning assets |
|
2,274 |
|
|
|
— |
|
|
|
54 |
|
|
Total interest income |
|
26,369 |
|
|
|
12,615 |
|
|
|
7,572 |
|
| Interest
expense |
|
|
|
|
|
|
Deposits |
|
5,111 |
|
|
|
— |
|
|
|
— |
|
|
Notes and securitizations |
|
11,411 |
|
|
|
7,348 |
|
|
|
4,791 |
|
|
Bank and FHLB borrowings |
|
1,546 |
|
|
|
1,303 |
|
|
|
394 |
|
|
Notes payable related party |
|
— |
|
|
|
262 |
|
|
|
112 |
|
|
Total interest expense |
|
18,068 |
|
|
|
8,913 |
|
|
|
5,297 |
|
|
Net interest income |
|
8,301 |
|
|
|
3,702 |
|
|
|
2,275 |
|
|
Provision for credit losses |
|
4,365 |
|
|
|
— |
|
|
|
— |
|
|
Net interest income after provision for credit losses |
|
3,936 |
|
|
|
3,702 |
|
|
|
2,275 |
|
| Noninterest
income |
|
|
|
|
|
|
Dividend income |
|
360 |
|
|
|
4,606 |
|
|
|
9,775 |
|
|
Loan servicing asset revaluation |
|
(1,983 |
) |
|
|
(6,131 |
) |
|
|
(3,456 |
) |
|
Servicing income |
|
4,985 |
|
|
|
3,767 |
|
|
|
2,961 |
|
|
Net gains on sales of loans |
|
17,252 |
|
|
|
6,948 |
|
|
|
15,034 |
|
|
Net gain (loss) on loans under the fair value option |
|
5,420 |
|
|
|
(14,089 |
) |
|
|
6,361 |
|
|
Technology and IT support income |
|
6,460 |
|
|
|
— |
|
|
|
— |
|
|
Electronic payment processing income |
|
10,659 |
|
|
|
— |
|
|
|
— |
|
|
Other noninterest income |
|
5,954 |
|
|
|
24,840 |
|
|
|
4,149 |
|
|
Total noninterest income |
|
49,107 |
|
|
|
19,941 |
|
|
|
34,824 |
|
| Noninterest
expense |
|
|
|
|
|
|
Salaries and employee benefits expense |
|
14,535 |
|
|
|
5,806 |
|
|
|
5,139 |
|
|
Technology services expense |
|
4,265 |
|
|
|
— |
|
|
|
— |
|
|
Electronic payment processing expense |
|
4,168 |
|
|
|
— |
|
|
|
— |
|
|
Professional services expense |
|
3,311 |
|
|
|
2,812 |
|
|
|
2,145 |
|
|
Other loan origination and maintenance expense |
|
2,503 |
|
|
|
8,846 |
|
|
|
8,122 |
|
|
Depreciation and amortization |
|
613 |
|
|
|
58 |
|
|
|
68 |
|
|
Loss on extinguishment of debt |
|
271 |
|
|
|
— |
|
|
|
597 |
|
|
Other general and administrative costs |
|
8,543 |
|
|
|
2,054 |
|
|
|
1,791 |
|
|
Total noninterest expense |
|
38,209 |
|
|
|
19,576 |
|
|
|
17,862 |
|
| Net income before
taxes |
|
14,834 |
|
|
|
4,067 |
|
|
|
19,237 |
|
| Income tax expense
(benefit) |
|
3,985 |
|
|
|
6,289 |
|
|
|
(793 |
) |
|
Net income |
|
10,849 |
|
|
|
(2,222 |
) |
|
|
20,030 |
|
| Dividends to preferred
shareholders |
|
(405 |
) |
|
|
— |
|
|
|
— |
|
| Net income available to common
shareholders |
$ |
10,444 |
|
|
$ |
(2,222 |
) |
|
$ |
20,030 |
|
| |
|
|
|
|
|
| Earnings per
share: |
|
|
|
|
|
| Basic |
$ |
0.43 |
|
|
$ |
(0.09 |
) |
|
$ |
0.84 |
|
| Diluted |
$ |
0.43 |
|
|
$ |
(0.09 |
) |
|
$ |
0.84 |
|
1The Company’s financial statements as of December 31, 2022,
are, and in previous years were, presented and accounted for under
the specialized method of accounting applicable to investment
companies and excluded many of our consolidated subsidiaries, which
were previously treated as portfolio company investments.
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)The information provided below presents a
reconciliation of each of our non-GAAP financial measures to the
most directly comparable GAAP financial measure. Ratios for
three-month period ended have been annualized based on calendar
days.
| |
|
|
| Newtek Bank,
NA |
As of and for the three months ended |
As of and for the year ended |
|
(in thousands) |
December 31, 2023 |
|
December 31, 2023 |
| Return on Average
Tangible Common Equity |
|
|
|
|
Numerator: Net Income (Loss) (GAAP) |
$15,064 |
|
$28,127 |
| Average Total Shareholders'
Equity (non-GAAP) |
92,201 |
|
81,043 |
| Deduct: Average Goodwill and
Intangibles (non-GAAP) |
2,099 |
|
2,157 |
| Denominator: Tangible Average
Common Equity (non-GAAP) |
$90,102 |
|
$78,886 |
| Return on Average Tangible
Common Equity (non-GAAP) |
66.3% |
|
35.7% |
| |
|
|
|
| Return on Average
Assets |
|
|
|
| Numerator: Net Income
(GAAP) |
$15,064 |
|
$28,127 |
| Denominator: Average Assets
(non-GAAP) |
601,130 |
|
490,604 |
| Return on Average Assets
(non-GAAP) |
9.9% |
|
5.7% |
| |
|
|
|
| Efficiency
Ratio |
|
|
|
| Numerator: Non-Interest
Expense (GAAP) |
$12,796 |
|
$51,378 |
| Net Interest Income
(GAAP) |
6,589 |
|
17,461 |
| Non-Interest Income
(GAAP) |
30,621 |
|
85,580 |
| Denominator: Total Income |
$37,210 |
|
$103,041 |
| Efficiency Ratio
(non-GAAP) |
34.4% |
|
49.9% |
| |
|
|
|
Summary of Reconciliation of GAAP to Non-GAAP Financial
Measures (unaudited)Newtek Bank’s comparative financial
measures have been adjusted to correct errors made in the Company’s
financial statements previously-issued in the first, second and
third quarters of 2023. The amounts presented below are as of and
for the periods ended (in thousands). Ratios for three-month period
ended have been annualized based on calendar days.
| |
|
|
| Newtek Bank,
NA |
|
As of and for the three months ended |
| (in thousands) |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
|
|
As Reported1 |
Adjustment |
As Adjusted |
|
As Reported1 |
Adjustment |
As Adjusted |
|
As Reported1 |
Adjustment |
As Adjusted |
| Return on Average
Tangible Common Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator: Net Income (Loss) (GAAP) |
|
$7,831 |
$974 |
$8,805 |
|
$5,974 |
$205 |
$6,179 |
|
$(1,817) |
$(104) |
$(1,921) |
| Average Total Shareholders'
Equity (non-GAAP) |
|
81,043 |
558 |
81,601 |
|
76,838 |
338 |
77,176 |
|
75,813 |
405 |
76,218 |
| Deduct: Average Goodwill and
Intangibles (non-GAAP) |
|
2,146 |
— |
2,146 |
|
2,195 |
— |
2,195 |
|
2,190 |
— |
2,190 |
| Denominator: Tangible Average
Common Equity (non-GAAP) |
|
$78,897 |
$558 |
$79,455 |
|
$74,643 |
$338 |
$74,981 |
|
$73,623 |
$405 |
$74,028 |
| Return on Average Tangible
Common Equity (non-GAAP) |
|
39.4% |
|
44.0% |
|
32.1% |
|
33.1% |
|
(10.0)% |
|
(10.5)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Return on Average
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| Numerator: Net Income
(GAAP) |
|
$7,831 |
$974 |
$8,805 |
|
$5,974 |
$205 |
$6,179 |
|
$(1,817) |
$(104) |
$(1,921) |
| Denominator: Average Assets
(non-GAAP) |
|
584,182 |
705 |
584,887 |
|
485,633 |
330 |
485,963 |
|
285,455 |
459 |
285,914 |
| Return on Average Assets
(non-GAAP) |
|
5.3% |
|
6.0% |
|
4.9% |
|
5.1% |
|
(2.6)% |
|
(2.7)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency
Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
| Numerator: Non-Interest
Expense (GAAP) |
|
$14,759 |
$(3,243) |
$11,516 |
|
$16,243 |
$(2,399) |
$13,844 |
|
$13,314 |
$(92) |
$13,222 |
| Net Interest Income
(GAAP) |
|
5,089 |
279 |
5,368 |
|
3,771 |
445 |
4,216 |
|
2,011 |
(329) |
1,682 |
| Non-Interest Income
(GAAP) |
|
24,984 |
(1,751) |
23,233 |
|
23,920 |
(2,055) |
21,865 |
|
10,101 |
(241) |
9,860 |
| Denominator: Total Income |
|
$30,073 |
$(1,472) |
$28,601 |
|
$27,691 |
$(1,610) |
$26,081 |
|
$12,112 |
$(570) |
$11,542 |
| Efficiency Ratio
(non-GAAP) |
|
49.1% |
|
40.3% |
|
58.7% |
|
53.1% |
|
109.9% |
|
114.6% |
1Certain amounts labeled "As Reported" have been
reclassified to conform to current period presentation.
|
|
|
|
|
| NewtekOne
Inc. |
As of and for the three months ended |
|
As of and for the year ended |
| (dollars and number of shares
in thousands) |
December 31, 2023 |
|
December 31, 2023 |
| Return on Average
Tangible Common Equity |
|
|
|
| Numerator: Net Income
(GAAP) |
$10,849 |
|
$47,329 |
| Average Total Shareholders'
Equity (non-GAAP) |
218,387 |
|
222,624 |
| Deduct: Preferred Stock
(GAAP) |
19,738 |
|
19,738 |
| Average Common Shareholders'
Equity (non-GAAP) |
198,649 |
|
202,886 |
| Deduct: Average Goodwill and
Intangibles (non-GAAP) |
31,250 |
|
31,706 |
| Denominator: Average Tangible
Common Equity (non-GAAP) |
$167,399 |
|
$171,180 |
| Return on Tangible Common
Equity (non-GAAP) |
25.7% |
|
27.6% |
| |
|
|
|
| Return on Average
Assets |
|
|
|
| Numerator: Net Income
(GAAP) |
$10,849 |
|
$47,329 |
| Denominator: Average Assets
(non-GAAP) |
1,382,690 |
|
1,316,923 |
| Return on Average Assets
(non-GAAP) |
3.1% |
|
3.6% |
| |
|
|
|
| Efficiency
Ratio |
|
|
|
| Numerator: Non-Interest
Expense (GAAP) |
$38,209 |
|
$146,329 |
| Net Interest Income
(GAAP) |
8,301 |
|
14,930 |
| Non-Interest Income
(GAAP) |
49,107 |
|
176,772 |
| Denominator: Total Income |
$57,408 |
|
$191,702 |
| Efficiency Ratio
(non-GAAP) |
66.6% |
|
76.3% |
| |
|
|
|
| Tangible Book Value
Per Share |
|
|
|
| Total Shareholders' Equity
(GAAP) |
$249,046 |
|
$249,046 |
| Deduct: Goodwill and
Intangibles (GAAP) |
30,120 |
|
30,120 |
| Numerator: Total Tangible Book
Value (non-GAAP) |
$218,926 |
|
$218,926 |
| Denominator: Total Number of
Shares Outstanding |
24,680 |
|
24,680 |
| Tangible Book Value Per Share
(non-GAAP) |
$8.87 |
|
$8.87 |
| |
|
|
|
| Tangible Book Value
Per Common Share |
|
|
|
| Total Tangible Book Value
(non-GAAP) |
$218,926 |
|
$218,926 |
| Deduct: Preferred Stock
(GAAP) |
19,738 |
|
19,738 |
| Numerator: Tangible Book Value
Per Common Share (non-GAAP) |
$199,188 |
|
$199,188 |
| Denominator: Total Number of
Shares Outstanding |
24,680 |
|
24,680 |
| Tangible Book Value Per Common
Share (non-GAAP) |
$8.07 |
|
$8.07 |
| |
|
|
|
Summary of Reconciliation of GAAP to Non-GAAP Financial
Measures (unaudited)The Company’s comparative financial
statements have been adjusted to correct errors made in the
Company’s financial statements previously-issued in the first,
second and third quarters of 2023. The amounts presented below are
as of and for the periods ended (in thousands, except per share
data). Ratios for three-month period ended have been annualized
based on calendar days.
| |
|
|
| NewtekOne
Inc. |
|
As of and for the three months ended |
| (dollars and number
of shares in thousands) |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
| |
As Reported1 |
Adjustment |
As Adjusted |
|
As Reported1 |
Adjustment |
As Adjusted |
|
As Reported1 |
Adjustment |
As Adjusted |
|
Return on Average Tangible Common Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator: Net Income (GAAP) |
|
$9,975 |
$944 |
$10,919 |
|
$6,853 |
$158 |
$7,011 |
|
$11,718 |
$6,832 |
$18,550 |
| Average Total Shareholders'
Equity (non-GAAP) |
|
224,119 |
5,787 |
229,906 |
|
219,863 |
14,155 |
234,018 |
|
180,707 |
13,303 |
194,010 |
| Deduct: Preferred Stock
(GAAP) |
|
19,738 |
— |
19,738 |
|
19,738 |
— |
19,738 |
|
19,738 |
— |
19,738 |
| Average Common Shareholders'
Equity (non-GAAP) |
|
204,381 |
5,787 |
210,168 |
|
200,125 |
14,155 |
214,280 |
|
160,969 |
13,303 |
174,272 |
| Deduct: Average Goodwill and
Intangibles (non-GAAP) |
|
27,376 |
(25,958) |
1,418 |
|
27,848 |
4,031 |
31,879 |
|
28,291 |
3,771 |
32,062 |
| Denominator: Average Tangible
Common Equity (non-GAAP) |
|
$177,005 |
$31,745 |
$208,750 |
|
$172,277 |
$10,124 |
$182,401 |
|
$132,678 |
$9,532 |
$142,210 |
| Return on Tangible Common
Equity (non-GAAP) |
|
22.4% |
|
20.8% |
|
16.0% |
|
15.4% |
|
35.8% |
|
52.9% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Return on Average
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| Numerator: Net Income
(GAAP) |
|
$9,975 |
$944 |
$10,919 |
|
$6,853 |
$158 |
$7,011 |
|
$11,718 |
$6,832 |
$18,550 |
| Denominator: Average Assets
(non-GAAP) |
|
1,407,389 |
17,281 |
1,424,670 |
|
1,341,174 |
14,236 |
1,355,410 |
|
1,111,391 |
13,303 |
1,124,693 |
| Return on Average Assets
(non-GAAP) |
|
2.8% |
|
3.0% |
|
2.0% |
|
2.1% |
|
4.2% |
|
6.6% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency
Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
| Numerator: Non-Interest
Expense (GAAP) |
|
$34,545 |
$(3,225) |
$31,320 |
|
$40,149 |
$(2,372) |
$37,777 |
|
$39,197 |
$(174) |
$39,023 |
| Net Interest Income
(GAAP) |
|
8,077 |
— |
8,077 |
|
5,673 |
— |
5,673 |
|
4,583 |
— |
4,583 |
| Non-Interest Income
(GAAP) |
|
42,900 |
(1,876) |
41,024 |
|
46,428 |
(2,143) |
44,285 |
|
42,787 |
(431) |
42,356 |
| Denominator: Total Income |
|
$50,977 |
$(1,876) |
$49,101 |
|
$52,101 |
$(2,143) |
$49,958 |
|
$47,370 |
$(431) |
$46,939 |
| Efficiency Ratio
(non-GAAP) |
|
67.8% |
|
63.8% |
|
77.1% |
|
75.6% |
|
82.7% |
|
83.1% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible Book Value
Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
| Total Shareholders' Equity
(GAAP) |
|
$227,023 |
$15,179 |
$242,202 |
|
$221,215 |
$14,234 |
$235,449 |
|
$218,510 |
$14,076 |
$232,586 |
| Deduct: Goodwill and
Intangibles (GAAP) |
|
27,157 |
4,154 |
31,311 |
|
27,595 |
4,072 |
31,667 |
|
28,101 |
3,990 |
32,091 |
| Numerator: Total Tangible Book
Value (non-GAAP) |
|
$199,866 |
$11,025 |
$210,891 |
|
$193,620 |
$10,162 |
$203,782 |
|
$190,409 |
$10,086 |
$200,495 |
| Denominator: Total Number of
Shares Outstanding |
|
24,645 |
— |
24,645 |
|
24,615 |
— |
24,615 |
|
24,609 |
— |
24,609 |
| Tangible Book Value Per Share
(non-GAAP) |
|
$8.11 |
$0.45 |
$8.56 |
|
$7.87 |
$0.41 |
$8.28 |
|
$7.74 |
$0.41 |
$8.15 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible Book Value
Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
| Total Tangible Book Value
(non-GAAP) |
|
$199,866 |
$11,025 |
$210,891 |
|
$193,620 |
$10,162 |
$203,782 |
|
$190,409 |
$10,086 |
$200,495 |
| Deduct: Preferred Stock
(GAAP) |
|
19,738 |
— |
19,738 |
|
19,738 |
— |
19,738 |
|
19,738 |
— |
19,738 |
| Numerator: Tangible Book Value
Per Common Share (non-GAAP) |
|
$180,128 |
$11,025 |
$191,153 |
|
$173,882 |
$10,162 |
$184,044 |
|
$170,671 |
$10,086 |
$180,757 |
| Denominator: Total Number of
Shares Outstanding |
|
24,645 |
— |
24,645 |
|
24,615 |
— |
24,615 |
|
24,609 |
— |
24,609 |
| Tangible Book Value Per Common
Share (non-GAAP) |
|
$7.31 |
$0.45 |
$7.76 |
|
$7.06 |
$0.42 |
$7.48 |
|
$6.94 |
$0.41 |
$7.35 |
1Certain amounts labeled "As Reported" have been
reclassified to conform to current period presentation.
Grafico Azioni NewtekOne (NASDAQ:NEWT)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni NewtekOne (NASDAQ:NEWT)
Storico
Da Gen 2024 a Gen 2025
