NewtekOne's Loan Growth Surges Amidst Competitive Landscape

NewtekOne Achieves Remarkable Loan Growth

NewtekOne, Inc. (NASDAQ: NEWT) recently announced that it closed an impressive $371.8 million in loans during the third quarter, marking a significant 17.3% increase from $316.7 million in the previous quarter. The company's performance reflects its commitment to providing exceptional business solutions even in a challenging financial landscape.

Strong Advance in SBA 7(a) Loan Closings

The company also reported a notable achievement in Small Business Administration (SBA) 7(a) loan closings, reaching $245.3 million in the third quarter, an increase of 6.6% compared to the second quarter of 2024, and showing a 12.5% rise from the same period last year. This growth is expected to contribute to a projected total of $935.0 million in SBA 7(a) loan closings for the entire year, representing a robust 14.7% growth from 2023.

Leadership Insights on Growth Strategy

Barry Sloane, President, Chairman, and CEO of NewtekOne, emphasized the company's efforts to outperform industry competitors in an environment of stagnating loan growth. With their rich 20-year history in the industry, NewtekOne leverages technology to enhance customer acquisition and streamline loan processing, ensuring they maintain high credit standards while achieving substantial growth.

Technological Edge in Client Acquisition

Mr. Sloane noted that their origination and processing machine have been finely tuned to deliver a unique client experience, making it efficient and productive. The company's proprietary NewTracker technology system plays a pivotal role in managing loan opportunities, with less than 2% of submissions being funded, ensuring only the best credits are considered.

Integration into Banking Operations

The transition into a regulated bank holding company and an OCC-chartered bank has required adjustments to several operational policies. However, the experienced staff has facilitated the seamless migration of SBA 7(a) and 504 lending into their newly chartered bank, enhancing the lending capacity.

Future Outlook for Loan Originations

NewtekOne anticipates selling between $650 to $700 million in government-guaranteed portions of their SBA 7(a) loans throughout 2024, which will positively impact their balance sheet. They expect to see total loan originations reach approximately $1.5 billion this year. The stability of their 504 loan portfolio, which has remained charge-off free since 2019, highlights NewtekOne's commitment to maintaining high-quality lending practices.

A Commitment to Business Development

The core philosophy of NewtekOne revolves around providing lending opportunities that deliver significant economic benefits while adhering to safe banking processes. Their aim is to sustain double-digit growth with high returns on assets, ensuring robust financial health and risk management.

Past Performance and Future Reporting

Investors and stakeholders are encouraged to check out the archived earnings conference call on NewtekOne's website for insights on their operational efficiencies and performance metrics. The upcoming earnings conference call is scheduled for November 7, offering further details about their third quarter 2024 results.

About NewtekOne, Inc.

NewtekOne, Inc. operates as a financial holding company, delivering a rich array of business and financial solutions under the Newtek brand for independent business owners across the United States. Since its inception in 1999, NewtekOne has dedicated itself to providing innovative products and efficient strategies to help businesses thrive by improving their sales, managing expenses, and minimizing risks.

Frequently Asked Questions

What is NewtekOne's recent loan closing figure?

NewtekOne reported a record loan closing figure of $371.8 million for the third quarter of 2024.

How has the SBA 7(a) loan closing performed?

SBA 7(a) loans reached $245.3 million in the third quarter, reflecting a 6.6% increase over the previous quarter.

What is NewtekOne's projected loan closure for 2024?

The company forecasts total SBA 7(a) loan closings will be approximately $935 million for 2024.

What technologies does NewtekOne utilize?

NewtekOne employs its proprietary NewTracker technology for efficient client acquisition and loan processing.

What is the upcoming significant event for NewtekOne?

NewtekOne will hold its earnings conference call on November 7, where the third-quarter performance will be detailed.

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