NewtekOne Q3 net interest income rises

Overview

• US business solutions provider's Q3 EPS fell year-over-year

• Net interest income rose 30% yr/yr

• Company's deposit balances more than doubled year-over-year, reaching $2.5 bln

Outlook

• Company maintains 2026 EPS guidance range of $1.70-$1.80

• Company expects to bring C&I LA loan securitization to market in Q1 2027

• Company expects revenue mix to shift toward recurring net interest income

Result Drivers

• DEPOSIT GROWTH - Co attributed deposit growth to attractive rates, no fees, digital account opening, and 24/7 customer support

• LOAN ORIGINATIONS - Co said higher SBA 7(a) and C&I loan originations contributed to loan balance growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the corporate financial services peer group is "buy."

• Wall Street's median 12-month price target for NewtekOne, Inc. is $14.00, about 21.5% above its October 27 closing price of $11.52

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• Oct 27 - Banc of California Q3 EPS rises on higher net interest income

• Oct 26 - Bank of Hawaii Q3 net income rises on higher net interest income

• Oct 28 - Hope Bancorp Q3 net income rises 16% year over year

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)