NewtekOne Posts Record 2025, Touts Bank Charter Success and Disruptive Tech Edge
January 30, 2026 – NewtekOne, Inc. (NASDAQ: NEWT), the financial holding company for Newtek Bank, National Association, capped off a transformative year with record earnings, underscoring the strategic value of its bank charter acquired three years ago. In a conference call led by Chairman, President, and CEO Barry Sloane, executives detailed a year of significant balance sheet growth, technological integration, and market differentiation aimed at the underserved independent business sector.
The company reported 2025 net income before taxes of approximately $80 million, a 16.4% increase year-over-year. Total revenue reached $284 million, up 10.6%. A key driver was explosive deposit growth, with the bank adding 9,000 new depository accounts in Q4 alone, bringing active accounts to 34,000. CEO Barry Sloane emphasized the firm's unique positioning as a "technology-enabled financial institution" built from the ground up for small and medium-sized businesses (SMBs), distinct from traditional community banks.
"We don't look like a community bank. We don't act like a community bank," Sloane stated. "We have built a financial institution to service our customers utilizing technology, providing a frictionless environment." This tech-forward approach includes digital account opening, integrated lending and payroll systems, and a "no branches, no traditional bankers" model designed for cost efficiency.
A cornerstone of NewtekOne's strategy is its focus on "patient capital"—business loans with amortization periods of 10 to 25 years, contrasted against the short-term, high-interest products prevalent in alternative lending. "Lower monthly payments make these loans exceptionally affordable," Sloane explained. The company's Alternative Loan Program (ALP), or long-amortizing C&I loans, saw strong demand, culminating in a heavily oversubscribed securitization in January 2026.
CFO Frank DeMaria provided financial color, noting a steady improvement in efficiency ratios and a declining cost of deposits. He outlined 2026 diluted EPS guidance of $2.15 to $2.55, with a midpoint of $2.35. The forecast assumes continued momentum in SBA and ALP originations, alongside deeper penetration of cross-selling products like business deposit accounts, payroll services, and insurance to its lending client base.
The call also addressed the ongoing runoff of the legacy Newtek Small Business Finance (NSBF) portfolio, with losses expected to continue declining materially in 2026. Credit metrics across the core bank portfolio showed signs of stabilization and improvement.
In his concluding remarks, Sloane positioned NewtekOne alongside other successful disruptors like Axos Bank and SoFi, suggesting that investor recognition for its hybrid tech-bank model may follow a similar, multi-year trajectory. "It just takes a while before investors get comfortable, get a feel for how the business works, test the model," he said, expressing confidence in the company's two-decade head start in the SMB niche.
Market Voices: Analyst & Investor Reactions
Eleanor Vance, Senior Financial Analyst at Clearwater Advisors: "The deposit growth story here is compelling and validates the bank charter strategy. Converting borrowers into depositors at a ~50% rate creates a valuable, sticky ecosystem. Their guidance appears conservative, especially if they continue to lower funding costs."
Marcus Thorne, Managing Partner at Oakhaven Capital: "Finally, a clear path to sustained profitability. The securitization engine for those ALP loans is a high-margin, capital-light business. They're not just a lender; they're a scalable originator and servicer. The stock's current multiple doesn't reflect the optionality in their tech stack."
David Chen, Independent Investor and former Bank Regulator: "Let's not get carried away. The 'disruptor' narrative is wearing thin. They're still heavily reliant on SBA, a government-backed program, and the NSBF runoff is a persistent drag. This 'patient capital' mantra sounds great, but longer terms mean greater exposure to an economic downturn. I'll believe the efficiency gains when I see them sustained for another four quarters."
Rebecca Shaw, Small Business Owner and Newtek Client: "As a customer, the difference is real. Getting a loan with a 15-year amortization changed our cash flow planning entirely. The process was entirely online, and having our banking, payroll, and credit line in one portal saves us hours every month. They're filling a massive gap left by the big banks."