NewtekOne, Inc. Reports Third Quarter 2024 Earnings of $0.45 per Basic and Diluted Common Share

BOCA RATON, Fla., Nov. 06, 2024 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (Nasdaq: NEWT), reports its financial and operating results for the three and nine months ended September 30, 2024.

NewtekOne Financial Highlights for the Three Months Ended September 30, 2024

• Net income was $11.9 million, and earnings per share (“EPS”) was $0.45 per basic and diluted common share, for the three months ended September 30, 2024; a 4.7% increase, on a per share basis, compared to $10.9 million and $0.43 per basic and diluted common share for the three months ended June 30, 2024, and a 4.7% increase, on a per share basis, compared to $10.9 million and $0.43 per basic and diluted common share for the three months ended September 30, 2023.
• Net interest income was $11.0 million for the three months ended September 30, 2024; an increase of 20.9% over $9.1 million for the three months ended June 30, 2024, and an increase of 35.8% over $8.1 million for the three months ended September 30, 2023.
• Total assets were $1.7 billion at September 30, 2024; an increase of 21.4% from $1.4 billion at December 31, 2023.
• Loans held for investment were $913.0 million at September 30, 2024; an increase of 13.3% over $806.1 million at December 31, 2023.
• Total borrowings were $655.8 million at September 30, 2024; an increase of 1.8% from $644.1 million at December 31, 2023.
• Net interest margin² was 3.08% for the three months ended September 30, 2024; an increase of 14.1% compared to 2.70% for the three months ended June 30, 2024, and an increase of 18.5% over 2.60% for the three months ended September 30, 2023.
• Return on Tangible Common Equity (“ROTCE”)¹ of 21.3% for the three months ended September 30, 2024; a decrease of 0.5% over 21.4% for the three months ended June 30, 2024, and a decrease of 14.5% over 24.9% for the three months ended September 30, 2023.
• Return on Average Assets (“ROAA”)^1,2 of 2.9% for the three months ended September 30, 2024; an increase of 3.6% over 2.8% for the three months ended June 30, 2024, and a decrease of 3.3% over 3.0% for the three months ended September 30, 2023.
• Efficiency ratio² of 61.8% for the three months ended September 30, 2024; an improvement of 6.8% compared to 66.3% for the three months ended June 30, 2024, and an improvement of 3.1% compared to 63.8% for the three months ended September 30, 2023.
• Total risk-based capital ratio² was 20.5% at September 30, 2024; an increase of 7.3% over 19.1% at December 31, 2023.
• Tier-1 leverage ratio² was 13.9% at September 30, 2024; an increase of 2.2% over 13.6% at December 31, 2023.
• The Newtek Payments segment, which includes Newtek Merchant Solutions ("NMS") and Mobil Money, had pretax income of $5.3 million for the three months ended September 30, 2024; a 32.5% increase over the three months ended September 30, 2023.
• On September 16, 2024, the Company completed a registered public offering of $75.0 million aggregate principal amount of its 8.625% Fixed Rate Senior Notes due 2029 (the "2029 Notes") (Nasdaq: NEWTH). The 2029 Notes were rated BBB+ by Egan-Jones Ratings Company.
• On July 23, 2024, NewtekOne's joint venture, Newtek-TSO II Conventional Credit Partners, LP, closed a $154.3 million alternative business loan backed securitization rated by Morningstar DBRS.
• On August 11, 2024, the Company entered into a definitive agreement to sell its wholly owned subsidiary Newtek Technology Solutions, Inc. ("NTS") to Paltalk, Inc. (Nasdaq: PALT). As previously disclosed, in connection with the Company’s acquisition of Newtek Bank and transition to a financial holding company, the Company made a commitment to the Board of Governors of the Federal Reserve System to divest or terminate the activities of NTS by January 6, 2025. As such, the Company reported NTS as held for sale as of September 30, 2024.
  
  

Post Third Quarter 2024 Highlights

• The Company maintains its 2024 annual EPS forecast range of $1.85 to $2.05 per basic and diluted common share.
• On October 21, 2024, the Company paid a quarterly cash dividend of $0.19 per share on its outstanding common shares.
• The Company forecasts 2025 annual EPS forecast in a range of $2.00 to $2.25 per basic and diluted share.
  
  

NewtekOne Financial Highlights for the Nine Months Ended September 30, 2024

• Net income was $32.5 million and EPS was $1.26 per basic and diluted common share for the nine months ended September 30, 2024, compared to $36.5 million and $1.46 per basic and diluted common share for the nine months ended September 30, 2023. Net income for the nine months ended September 30, 2023, was positively impacted by an income tax benefit of $14.2 million, or $0.59 per basic and diluted share. Excluding this income tax benefit, EPS for the nine months ended September 30, 2023, would have been $0.87 per basic and diluted share.¹
• Net interest income was $29.0 million for the nine months ended September 30, 2024; an increase of 58.5% over $18.3 million for the nine months ended September 30, 2023.
• Net interest margin² was 2.91% for the nine months ended September 30, 2024; an increase of 30.5% over 2.23% for the nine months ended September 30, 2023.
• ROTCE¹ of 21.2% for the nine months ended September 30, 2024; a decrease of 26.9% compared to 29.0% for the nine months ended September 30, 2023. ROTCE for the nine months ended September 30, 2023, was positively impacted by the income tax benefit in the first quarter of 2023.
• ROAA^1,2 of 2.9% for the nine months ended September 30, 2024; a decrease of 23.7% compared to 3.8% for the nine months ended September 30, 2023. ROAA for the nine months ended September 30, 2023, was positively impacted by the income tax benefit in the first quarter of 2023.
• Efficiency ratio² of 66.2% for the nine months ended September 30, 2024; an improvement of 10.7% compared to 74.1% for the nine months ended September 30, 2023.
• The Newtek Payments segment, which includes NMS and Mobil Money, had pretax income of $14.2 million for the nine months ended September 30, 2024; a 43.4% increase over the nine months ended September 30, 2023.
  
  

Newtek Bank, N.A. Financial Highlights

• Total deposits³ were $745.7 million at September 30, 2024; an increase of 12.4% over $663.7 million at June 30, 2024 and an increase of 43.7% over $519.1 million in deposits at December 31, 2023.
• Insured deposits represented approximately 74.6% of total deposits at September 30, 2024.
• Net interest margin was 5.29% for the three months ended September 30, 2024; an increase of 9.5% over 4.83% for the three months ended June 30, 2024, and an increase of 49.9% over 3.53% for the three months ended September 30, 2023.
• ROTCE¹ of 49.3% for the three months ended September 30, 2024; an increase of 0.8% over 48.9% for the three months ended June 30, 2024, and an increase of 11.8% over 44.1% for the three months ended September 30, 2023.
• ROAA¹ of 6.3% for the three months ended September 30, 2024; a decrease of 1.6% over 6.4% for the three months ended June 30, 2024, and an increase of 5.0% over 6.0% for the three months ended September 30, 2023.
• Efficiency ratio¹ of 39.4% for the three months ended September 30, 2024; an improvement of 6.9% from 42.3% for the three months ended June 30, 2024, and an improvement of 2.2% from 40.3% for the three months ended September 30, 2023.
• Total risk-based capital ratio was 16.8% at September 30, 2024; a decrease of 26.3% from 22.8% at December 31, 2023.
• Tier-1 leverage ratio was 13.3% at September 30, 2024; a decrease of 19.9% from 16.6% at December 31, 2023.

Lending Highlights

• SBA 7(a) loan closings of $245.3 million for the three months ended September 30, 2024; an increase of 12.5% over $218.0 million of SBA 7(a) loans closings for the three months ended September 30, 2023.
• The Company forecasts $935.0 million in total SBA 7(a) loan closings for 2024, which would represent a 14.7% increase over 2023.
• Newtek Bank closed $38.4 million of SBA 504 loans for the three months ended September 30, 2024; an increase of 117.0% over $17.7 million SBA 504 loans closed for the three months ended September 30, 2023.
• Newtek Bank and the Company’s non-bank lending subsidiaries closed $372.1 million of loans across all loan products for the three months ended September 30, 2024; a 43.0% increase over $260.2 million of loans closed for the same period in 2023.

Barry Sloane, CEO, President and Chairman commented, “We are extremely pleased with our third quarter 2024 financial and operational performance across the areas of total deposit growth, business deposit growth, loan growth, and growth in the electronic payment processing segment, which enabled us to achieve earnings of $0.45 per basic and diluted common share, beating the midpoint of our previously stated forecast of $0.43. In our first 21 months of operating as a financial holding company, we are continuing to execute on our transition plan that began in January 2023, when we acquired the National Bank of New York City. Acquiring this 61-year old OCC chartered bank and transitioning from our prior business development company structure has taken some time, however we believe that we have successfully demonstrated, quarter after quarter, that we have been able to overcome any hurdles. Our business model and financial results continue to demonstrate that our business and financial solutions offerings, with over two decades of client acceptance and attractive margins, can readily overcome the costs associated with being a small, but growing financial holding company that provides business and financial solutions to independent business owners in all fifty states. Newtek Bank, with $900 million in assets and over 370 dedicated employees, is poised for growth while remaining focused on compliance, risk management, and customer service. We believe that Newtek Bank's low efficiency ratio of 39.4% is evidence that that our strategy of no branches, brokers, business development officers or traditional bankers is a more cost-efficient business strategy. Indeed, we conduct business with an increased level of efficiency and competency with our U.S.-based dedicated professionals, who are available on camera, around-the-clock, 7 days a week, for all of our clients’ needs. We utilize what we view as cutting-edge technology, including aspects of artificial intelligence, to improve our associates’ interface with our clients, and we believe the full potential of our business model has not yet been achieved. We are excited that Newtek Bank was able to outperform standard industry metrics, as well as our previously issued forecasted returns, in terms of ROAA, ROTCE, and efficiency ratios. We believe the market is recognizing our technology-enabled, solutions-provider approach to business banking, as we demonstrate more than sufficient loan loss reserves and capitalization levels, which we will detail during our third quarter 2024 earnings conference call.”

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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 with our filings with regulatory agencies and our Form 10-Q for the period ended September 30, 2024.}

³ _{Total deposits as reported include deposits from affiliates held at Newtek Bank, which are eliminated through consolidation on NewtekOne's consolidated financial statements.}

Mr. Sloane continued, “Pretax income in our Newtek Payments segment, which includes NMS and Mobil Money, for the three and nine months ended September 30, 2024, grew by 32.5% and 43.4%, respectively, over the same periods in 2023. We believe this pretax income growth has come from clients' appreciating the benefits of our integration of owning a payment processor and an affiliated nationally chartered bank. For example, we have clients that want to process payments with NMS because we also own Newtek Bank and are able to provide clients, through the Newtek Advantage^®, real-time analytics and data and transactional capability all in one location for things like daily batches of chargebacks, refunds, specific card charges as well as ACH, and Fed wires, with the ability to integrate these payments directly into certain accounting software packages. We currently anticipate the Payments segment achieving $17.7 million in pretax income for the full year 2024, which would be an increase over 2023 pretax income of $13.3 million for this segment. We possess the ability to service clients through our proprietary platform the Newtek Advantage^® and present a payments platform that we view as special. We believe we will continue to grow pretax income in this segment in the fourth quarter of 2024 and throughout 2025. We plan to discuss this double-digit growth and performance in our upcoming conference call. We believe we are well positioned to continue our growth trajectory and, most importantly, fulfill our mission of making our clients more successful each and every day through the utilization of our broad array of business and financial solutions and the Newtek Advantage^®. As such, we are maintaining our 2024 earnings guidance of $1.85 to $2.05 per basic and diluted common share and are forecasting 2025 earnings guidance of $2.00 to $2.25 per basic and diluted common share.”

Mr. Sloane concluded, “We could not be more excited about our future, as our original three-year growth plan continues to fully develop without the need to modify. In our upcoming earnings conference call, we will demonstrate several important factors to the investor and analyst community that will highlight our capabilities in risk management, compliance, and diversification of business lines, further illustrating that our differentiated products and solutions, available to our client base, continue to track and demonstrate that doing business with NewtekOne is truly a business advantage.”

Third Quarter 2024 Conference Call and Webcast

A conference call to discuss the third quarter 2024 financial results will be hosted by Barry Sloane, President, Chairman and Chief Executive Officer and M. Scott Price, Chief Financial Officer, tomorrow, Thursday, November 7, 2024, 8:30 a.m. ET.

Please note, to attend the conference call or webcast, participants should register online at . To receive a dial-in number, participants are requested to register at a minimum 15 minutes before the start of the call. The corresponding presentation will be available in the ‘Events & Presentations’ section of the Investor Relations portion of NewtekOne's website at . A replay of the call with the corresponding presentation will be available on NewtekOne's website shortly following the live presentation and will be available for a period of one year.

Note Regarding Dividend Payments

Amount and timing of dividends, if any, remain subject to the discretion of the Company's Board of Directors.

, Your Business Solutions Company^®, is a financial holding company, which along with Newtek Bank and NewtekOne's non-bank consolidated subsidiaries, 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 our independent business owner 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.), , , , , , , , and .

, , , 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 Statements

Certain 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 with our filings with regulatory agencies and the filing of the Company's Form 10-Q for the quarterly period ended September 30, 2024. 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 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 which are available on NewtekOne's website (/sec-filings) and on the Securities and Exchange Commission’s website (). 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 Relations

Contact: Jayne Cavuoto

Telephone: (212) 273-8179 /

NEWTEKONE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In Thousands, except for Per Share Data)
	September 30, 2024				December 31, 2023
ASSETS	(Unaudited)
Cash and due from banks	$	9,688			$	15,398
Restricted cash		27,929				30,919
Interest bearing deposits in banks		152,805				137,689
Total cash and cash equivalents		190,422				184,006
Debt securities available-for-sale, at fair value		23,790				32,171
Loans held for sale, at fair value		242,225				118,867
Loans held for sale, at LCM		60,203				56,607
Loans held for investment, at fair value		394,471				469,801
Loans held for investment, at amortized cost, net of deferred fees and costs		518,489				336,305
Allowance for credit losses		(26,045	)			(12,574	)
Loans held for investment, at amortized cost, net		492,444				323,731
Federal Home Loan Bank and Federal Reserve Bank stock		3,608				3,635
Settlement receivable		62,117				62,230
Joint ventures, at fair value (cost of $43,321 and $37,864), respectively		55,750				40,859
Non-control investments (cost of $680 and $796), respectively		740				728
Goodwill and intangibles		14,794				30,120
Right of use assets		3,992				5,701
Deferred tax asset, net		—				5,230
Servicing assets		46,111				39,725
Other assets		62,984				56,102
Assets classified as held for sale		20,519				—
Total assets	$	1,674,170			$	1,429,513
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing	$	11,040			$	10,053
Interest-bearing		638,418				453,452
Total deposits		649,458				463,505
Borrowings		655,834				644,122
Dividends payable		5,237				4,792
Lease liabilities		4,883				6,952
Deferred tax liabilities, net		4,700				—
Due to participants		22,217				23,796
Accounts payable, accrued expenses and other liabilities		45,092				37,300
Liabilities directly associated with assets classified as held for sale		4,964				—
Total liabilities		1,392,385				1,180,467
Shareholders' Equity:
Preferred stock (par value $0.02 per share; authorized 20 shares, 20 shares issued and outstanding)		19,738				19,738
Common stock (par value $0.02 per share; authorized 199,980 shares, 26,018 and 24,680 issued and outstanding, respectively)		520				492
Additional paid-in capital		216,662				200,913
Retained earnings		44,834				28,051
Accumulated other comprehensive loss, net of income taxes		31				(148	)
Total shareholders' equity		281,785				249,046
Total liabilities and shareholders' equity	$	1,674,170			$	1,429,513

NEWTEKONE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In Thousands, except for Per Share Data)
	Three Months Ended												Nine Months Ended
	September 30, 2024				June 30, 2024				September 30, 2023 (as restated)				September 30, 2024				September 30, 2023 (as restated)
Interest income
Debt securities available-for-sale	$	334			$	374			$	436			$	1,168			$	1,083
Loans and fees on loans		28,588				26,773				23,232				80,346				60,341
Other interest earning assets		2,349				2,206				3,068				6,177				6,580
Total interest income		31,271				29,353				26,736				87,691				68,004
Interest expense
Deposits		7,314				6,865				5,212				19,755				10,738
Notes and securitizations		11,482				11,118				11,005				33,427				28,806
Bank and FHLB borrowings		1,494				2,244				2,442				5,496				10,127
Total interest expense		20,290				20,227				18,659				58,678				49,671
Net interest income		10,981				9,126				8,077				29,013				18,333
Provision for credit losses		6,928				5,799				3,446				16,742				7,339
Net interest income after provision for credit losses		4,053				3,327				4,631				12,271				10,994
Noninterest income
Dividend income		374				368				388				1,128				1,397
Loan servicing asset revaluation		(1,786	)			(1,862	)			(1,951	)			(5,383	)			(1,566	)
Servicing income		4,958				4,607				4,602				14,922				13,304
Net gains on sales of loans		25,675				22,564				13,751				68,531				33,482
Net (loss) gain on loans under the fair value option		(4,085	)			(2,894	)			2,809				(4,181	)			12,588
Technology and IT support income		3,311				5,174				5,376				14,255				18,456
Electronic payment processing income		11,777				12,645				11,192				35,409				32,196
Other noninterest income		11,627				11,418				4,859				28,557				17,808
Total noninterest income		51,851				52,020				41,026				153,238				127,665
Noninterest expense
Salaries and employee benefits expense		18,905				20,790				13,726				60,201				51,173
Technology services expense		1,796				3,420				2,738				8,624				10,007
Electronic payment processing expense		4,438				5,693				4,817				14,977				14,159
Professional services expense		3,929				2,743				3,170				11,237				9,766
Other loan origination and maintenance expense		4,132				3,015				1,836				9,391				6,930
Depreciation and amortization		517				521				730				1,570				2,271
Other general and administrative costs		5,130				4,382				4,303				14,570				13,814
Total noninterest expense		38,847				40,564				31,320				120,570				108,120
Net income before taxes		17,057				14,783				14,337				44,939				30,539
Income tax expense (benefit)		5,123				3,838				3,418				12,410				(5,941	)
Net income		11,934				10,945				10,919				32,529				36,480
Dividends to preferred shareholders		(400	)			(400	)			(400	)			(1,200	)			(1,049	)
Net income available to common shareholders	$	11,534			$	10,545			$	10,519			$	31,329			$	35,431
Earnings per share:
Basic	$	0.45			$	0.43			$	0.43			$	1.26			$	1.46
Diluted	$	0.45			$	0.43			$	0.43			$	1.26			$	1.46

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 and nine month periods ended have been annualized based on calendar days.

Reconciliation of Core EPS to GAAP EPS:

		Three Months Ended September 30, 2023											Nine Months Ended September 30, 2023
		GAAP EPS				Adjustments			Core EPS				GAAP EPS				Adjustments				Core EPS
		Based on Net Income				Discrete Tax Benefits on Reorg			Based on Adjusted Net Income				Based on Net Income				Discrete Tax Benefits on Reorg				Based on Adjusted Net Income
Net income before taxes		$	14,337			$	—		$	14,337			$	30,539			$	—			$	30,539
Income tax expense (benefit)			3,418				—			3,418				(5,941	)			14,244				8,303
Net income			10,919				—			10,919				36,480				(14,244	)			22,236
Preferred dividends			(400	)			—			(400	)			(1,049	)			—				(1,049	)
Net income available to common shareholders		$	10,519			$	—		$	10,519			$	35,431			$	(14,244	)		$	21,187
Basic:
Income available to common shareholders		$	10,519			$	—		$	10,519			$	35,431			$	(14,244	)		$	21,187
Weighted-average basic shares outstanding			24,277				—			24,277				24,255				—				24,255
Basic		$	0.43			$	—		$	0.43			$	1.46			$	0.59			$	0.87
Diluted:
Income available to common shareholders		$	10,519			$	—		$	10,519			$	35,431			$	(14,244	)		$	21,187
Total weighted-average diluted shares outstanding			24,413				—			24,413				24,336				—				24,336
Diluted		$	0.43			$	—		$	0.43			$	1.46			$	0.59			$	0.87

Reconciliation of Newtek Bank and NewtekOne Inc. Non-GAAP Measures:

Newtek Bank, NA	As of and for the three months ended						As of and for the nine months ended
(in thousands)	September 30, 2024		June 30, 2024		September 30, 2023 (as restated)		September 30, 2024		September 30, 2023 (as restated)
Return on Average Tangible Common Equity
Net Income (GAAP)	$13,484		$12,453		$8,805		$35,338		$13,063
Tax-adjusted amortization of intangibles	32		33		35		99		108
Numerator: Adjusted net income	13,516		12,486		8,840		35,437		13,171
Average Total Shareholders' Equity1	110,124		103,678		81,601		104,884		77,286
Deduct: Average Goodwill and Intangibles1	1,009		1,052		2,146		1,053		2,177
Denominator: Tangible Average Common Equity1	$109,115		$102,626		$79,455		$103,831		$75,109
Return on Average Tangible Common Equity1	49.3%		48.9%		44.1%		45.6%		23.4%
Return on Average Assets
Numerator: Net Income (GAAP)	$13,484		$12,453		$8,805		$35,338		$13,063
Denominator: Average Assets1	855,992		782,138		584,887		763,917		453,361
Return on Average Assets1	6.3%		6.4%		6.0%		6.2%		3.9%
Efficiency Ratio
Numerator: Non-Interest Expense (GAAP)	$17,006		$17,308		$11,516		$51,747		$38,682
Net Interest Income (GAAP)	11,216		9,310		5,368		28,248		10,871
Non-Interest Income (GAAP)	31,960		31,641		23,233		90,827		54,958
Denominator: Total Income	$43,176		$40,951		$28,601		$119,075		$65,829
Efficiency Ratio1	39.4%		42.3%		40.3%		43.5%		58.8%

NewtekOne, Inc.	As of and for the three months ended						As of and for the nine months ended
(dollars and number of shares in thousands)	September 30, 2024		June 30, 2024		September 30, 2023 (as restated)		September 30, 2024		September 30, 2023 (as restated)
Return on Average Tangible Common Equity
Numerator: Net Income (GAAP)	$11,934		$10,945		$10,919		$32,529		$36,480
Tax-adjusted amortization of intangibles	141		143		279		437		863
Numerator: Adjusted net income	12,075		11,088		11,198		32,966		37,343
Average Total Shareholders' Equity1	274,888		258,326		229,906		257,081		224,052
Deduct: Preferred Stock (GAAP)	19,738		19,738		19,738		19,738		19,738
Average Common Shareholders' Equity1	255,150		238,588		210,168		237,343		204,314
Deduct: Average Goodwill and Intangibles1	29,729		29,883		31,489		29,890		31,860
Denominator: Average Tangible Common Equity1	$225,421		$208,705		$178,679		$207,453		$172,454
Return on Average Tangible Common Equity1	21.3%		21.4%		24.9%		21.2%		29.0%
Return on Average Assets
Numerator: Net Income (GAAP)	$11,934		$10,945		$10,919		$32,529		$36,480
Denominator: Average Assets1	1,610,849		1,551,009		1,424,670		1,521,465		1,294,762
Return on Average Assets1	2.9%		2.8%		3.0%		2.9%		3.8%
Efficiency Ratio
Numerator: Non-Interest Expense (GAAP)	$38,847		$40,564		$31,320		$120,570		$108,120
Net Interest Income (GAAP)	10,981		9,126		8,077		29,013		18,333
Non-Interest Income (GAAP)	51,851		52,020		41,024		153,238		127,665
Denominator: Total Income	$62,832		$61,146		$49,101		$182,251		$145,998
Efficiency Ratio1	61.8%		66.3%		63.8%		66.2%		74.1%

¹ Non-GAAP

Reconciliation of NewtekOne, Inc. Tangible Book Value:

NewtekOne, Inc.	September 30, 2024		June 30, 2024		September 30, 2023 (as restated)
Tangible Book Value Per Share
Total Shareholders' Equity (GAAP)	$281,785		$274,002		$242,202
Deduct: Goodwill and Intangibles (GAAP)	14,794		29,783		31,311
Numerator: Total Tangible Book Value1	$266,991		$244,219		$210,891
Denominator: Total Number of Shares Outstanding	26,018		25,852		24,645
Tangible Book Value Per Share1	$10.26		$9.45		$8.56
Tangible Book Value Per Common Share
Total Tangible Book Value1	$266,991		$244,219		$210,891
Deduct: Preferred Stock (GAAP)	19,738		19,738		19,738
Numerator: Tangible Book Value Per Common Share1	$247,253		$224,481		$191,153
Denominator: Total Number of Shares Outstanding	26,018		25,852		24,645
Tangible Book Value Per Common Share1	$9.50		$8.68		$7.76

¹ Non-GAAP