NewtekOne, Inc. (Nasdaq: NEWT), announced today its 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 $1.71 and diluted EPS of
$1.70, in line with our previously issued annual earnings guidance
of $1.60 to $1.80 per basic and diluted common share. For 2024, we
are currently forecasting annual EPS in a range of $1.80 to $2.00
per basic and diluted common share, which would represent an
approximate 11% increase from 2023 EPS to the midpoint of the 2024
forecasted range. We believe that we can achieve double-digit
controlled 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 5.8%, return on tangible
common equity ("ROTCE") of 35.8%, and an efficiency ratio of 49.8%.
NewtekOne, Newtek Bank's financial holding company, realized ROAA
of 3.2%, and ROTCE of 22.7%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 16.5%,
total capital ratio of 19.6%, and 15.6% 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. During our call tomorrow morning, we will illustrate our
differentiated model through the discussion of detailed performance
metrics.”
NewtekOne Fourth Quarter 2023 Financial
Highlights
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 $13.4 million, or $0.53 per basic and diluted
common share, for the three months ended December 31, 2023, a 20.5%
increase on a per share basis over 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 $806.8 million at December 31,
2023; an increase of 4.2% 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 $70.7 million of restricted
cash, at September 30, 2023.
- Net interest margin2 was 2.83% for the three months ended
December 31, 2023; an increase of 4.4% over 2.71% for the three
months ended September 30, 2023.
- ROTCE of 20.4% for the three months ended December 31, 2023; a
decrease of 16.0% over 24.3% for the three months ended September
30, 2023.
- ROAA1,2 of 3.7% for the three months ended December 31, 2023;
an increase of 19.4% over 3.1% for the three months ended September
30, 2023.
- Efficiency ratio2 of 61.2% for the three months ended December
31, 2023; a decrease of 4.1% compared to 63.8% for the three months
ended September 30, 2023.
- Total risk-based capital ratio2 was 19.6% at December 31, 2023;
an increase of 10.7% over 17.7% at September 30, 2023.
- Tier-1 leverage ratio2 was 15.6% at December 31, 2023; an
increase of 6.8% over 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, which would
represent a 13.1% increase from full year 2023 EPS of $1.70 from
the midpoint of the full year 2024 forecasted range.
NewtekOne Financial Highlights Twelve Months Ended
December 31, 2023
- Net income was $43.0 million, or $1.71 per basic common share
and $1.70 per diluted common share, for the twelve months ended
December 31, 2023, which is line with our previously stated full
year earnings guidance of $1.60 to $1.80 per basic and diluted
common share.
- 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 73.6% 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 66.7% for the three months ended December 31, 2023;
an increase of 51.6% over 44.0% for the three months ended
September 30, 2023.
- ROAA1,2 of 10.0% for the three months ended December 31, 2023;
an increase of 66.7% 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 22.2% at December 31, 2023,
a decrease of 11.2% from 25.0% at September 30, 2023.
- Tier-1 leverage ratio2 was 16.4% at December 31, 2023; an
increase of 10.1% from 14.9% at September 30, 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 241.7% 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 $911.5 million
of loans closed by NewtekOne, its subsidiaries and portfolio
companies for the same period in 2022.
________________________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.
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 $0.08 per share and
$0.07 per share, respectively; (ii) year-to-date Net Income
reflects an increase of $1.1 million; and (iii) Total Assets
reflects an increase of $7.5 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 the recognition 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 will discuss these concepts and
the value of these impressions on our call tomorrow. 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 3.1% 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. We are excited about our results for 2023 and discussing
them in greater detail during our conference call scheduled for
tomorrow at 8:30am EST. Please visit our website and review our
Fourth Quarter and Full Year 2023 Presentation.”
Fourth Quarter and Full Year 2023 Conference Call and
Webcast
A conference call to discuss the fourth quarter and full year
2023 financial results will be hosted by Barry Sloane, President,
Chairman and Chief Executive Officer, M. Scott Price, Chief
Financial Officer, and Nick Leger, Chief Accounting Officer,
tomorrow, Wednesday, March 6, 2024, 8:30 a.m. ET.
Please note, to attend the conference call or webcast,
participants should register online at NewtekOne, Inc. Q4 and Full
Year 2023 Financial Results Conference Call. 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
NewtekOne, Inc. Q4 and FY 2023 Financial Results Conference Call. 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 90 days.
Note Regarding Dividend Payments
Amount and timing of dividends, if any, remain subject to the
discretion of the Company's Board of Directors.
About NewtekOne, Inc.NewtekOne®, Your Business
Solutions Company®, is a financial holding company, which along
with its bank and non-bank consolidated subsidiaries,
(collectively, “NewtekOne”), 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®, N.A., Your
Business Solutions Company® 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 in a $5.1
million and $5.7 million decrease in non-interest income and
non-interest expense, respectively;
- Calculating EPS under ASC 260 to
reflect the treasury stock and if-converted methods and adjusting
the allocations under the two-class method, in conjunction with
other adjustments to net income, all resulting in an increase of
$0.08 and $0.07 per share for basic and diluted EPS,
respectively;
- Establishing deferred net tax
assets and income taxes receivable under ASC 740 in conjunction
with the common control transaction, resulting in increased net
deferred tax assets and income taxes receivable of $1.9
million;
- Establishing certain servicing
assets under ASC 860 in conjunction with the common control
transaction 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
understatements of goodwill and intangibles and stockholders’
equity resulting in respective increases of $3.9 million.
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 |
| |
AsReported1 |
Adjustment |
AsAdjusted |
|
AsReported1 |
Adjustment |
AsAdjusted |
|
AsReported1 |
Adjustment |
AsAdjusted |
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
| All other assets |
|
1,314,223 |
|
1,837 |
|
1,316,060 |
|
|
1,373,503 |
|
2,007 |
|
1,375,510 |
|
|
1,184,443 |
|
1,925 |
|
1,186,368 |
| Total
assets |
$ |
1,378,154 |
$ |
7,508 |
$ |
1,385,662 |
|
$ |
1,436,852 |
$ |
6,563 |
$ |
1,443,415 |
|
$ |
1,245,895 |
$ |
6,243 |
$ |
1,252,138 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
$ |
1,151,131 |
$ |
162 |
$ |
1,151,293 |
|
$ |
1,215,637 |
$ |
162 |
$ |
1,215,799 |
|
$ |
1,027,385 |
$ |
— |
$ |
1,027,385 |
| Total shareholders’
equity |
|
227,023 |
|
7,346 |
|
234,369 |
|
|
221,215 |
|
6,401 |
|
227,616 |
|
|
218,510 |
|
6,243 |
|
224,753 |
| Total Liabilities
& Shareholders Equity |
$ |
1,378,154 |
|
7,508 |
|
1,385,662 |
|
|
1,436,852 |
|
6,563 |
|
1,443,415 |
|
|
1,245,895 |
|
6,243 |
|
1,252,138 |
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 |
| |
AsReported1 |
Adjustment |
AsAdjusted |
|
AsReported1 |
Adjustment |
AsAdjusted |
|
AsReported1 |
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 |
|
(4,258 |
) |
|
127,855 |
|
|
89,215 |
|
|
(2,384 |
) |
|
86,831 |
|
|
|
42,787 |
|
|
(241 |
) |
|
42,546 |
|
| Noninterest expense |
|
113,891 |
|
(5,771 |
) |
|
108,120 |
|
|
79,346 |
|
|
(2,546 |
) |
|
76,800 |
|
|
|
39,197 |
|
|
(174 |
) |
|
39,023 |
|
| Income tax expense
(benefit) |
|
671 |
|
454 |
|
|
1,125 |
|
|
(2,339 |
) |
|
48 |
|
|
(2,291 |
) |
|
|
(4,863 |
) |
|
(23 |
) |
|
(4,886 |
) |
| Net
income |
$ |
28,545 |
$ |
1,059 |
|
$ |
29,604 |
|
$ |
18,571 |
|
$ |
114 |
|
$ |
18,685 |
|
|
$ |
11,718 |
|
$ |
(44 |
) |
$ |
11,674 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| 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 |
$ |
0.08 |
|
$ |
1.18 |
|
$ |
0.72 |
|
$ |
0.02 |
|
$ |
0.74 |
|
|
$ |
0.46 |
|
$ |
0.01 |
|
$ |
0.47 |
|
| Diluted |
$ |
1.10 |
$ |
0.07 |
|
$ |
1.17 |
|
$ |
0.72 |
|
$ |
0.02 |
|
$ |
0.74 |
|
|
$ |
0.46 |
|
$ |
— |
|
$ |
0.46 |
|
| |
|
For the three months ended |
|
For the three months ended |
|
For the three months ended |
| |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
|
|
AsReported1 |
Adjustment |
AsAdjusted |
|
AsReported1 |
Adjustment |
AsAdjusted |
|
AsReported1 |
Adjustment |
AsAdjusted |
|
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 |
|
(1,874 |
) |
|
41,026 |
|
|
46,428 |
|
(2,143 |
) |
|
44,285 |
|
|
42,787 |
|
|
(241 |
) |
|
42,546 |
|
| Noninterest expense |
|
|
34,545 |
|
(3,224 |
) |
|
31,321 |
|
|
40,149 |
|
(2,372 |
) |
|
37,777 |
|
|
39,197 |
|
|
(174 |
) |
|
39,023 |
|
| Income tax expense
(benefit) |
|
|
3,011 |
|
406 |
|
|
3,417 |
|
|
2,524 |
|
71 |
|
|
2,595 |
|
|
(4,863 |
) |
|
(23 |
) |
|
(4,886 |
) |
| Net
income |
|
$ |
9,975 |
$ |
944 |
|
$ |
10,919 |
|
$ |
6,853 |
$ |
158 |
|
$ |
7,011 |
|
$ |
11,718 |
|
$ |
(44 |
) |
$ |
11,674 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
$ |
0.01 |
|
$ |
0.47 |
|
| Diluted |
|
$ |
0.38 |
$ |
0.05 |
|
$ |
0.43 |
|
$ |
0.26 |
$ |
0.01 |
|
$ |
0.27 |
|
$ |
0.46 |
|
$ |
— |
|
$ |
0.46 |
|
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
HoldingCompany(unaudited) |
|
InvestmentCompany1 |
|
Cash and due from banks |
$ |
13,929 |
|
|
$ |
53,692 |
|
| Restricted cash |
|
30,919 |
|
|
|
71,914 |
|
| Interest bearing deposits in
banks |
|
139,158 |
|
|
|
— |
|
|
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 |
|
55,953 |
|
|
|
— |
|
| Loans held for investment, at
fair value |
|
469,801 |
|
|
|
505,268 |
|
| Loans held for investment, at
amortized cost, net of deferred fees and costs |
|
336,956 |
|
|
|
— |
|
| Allowance for credit
losses |
|
(12,574 |
) |
|
|
— |
|
|
Loans held for investment, at amortized cost, net |
|
324,382 |
|
|
|
— |
|
| Federal Home Loan Bank and
Federal Reserve Bank stock |
|
3,635 |
|
|
|
— |
|
| Settlement receivable |
|
62,230 |
|
|
|
— |
|
| Joint ventures, at fair value
(cost of $37,865 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 |
|
31,316 |
|
|
|
— |
|
| Right of use assets |
|
5,701 |
|
|
|
6,484 |
|
| Deferred tax asset, net |
|
461 |
|
|
|
— |
|
| Servicing assets |
|
39,725 |
|
|
|
30,268 |
|
| Other assets |
|
52,657 |
|
|
|
28,506 |
|
|
Total assets |
$ |
1,422,492 |
|
|
$ |
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 |
|
35,589 |
|
|
|
21,424 |
|
|
Total liabilities |
|
1,178,756 |
|
|
|
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 |
|
199,956 |
|
|
|
354,243 |
|
| Retained earnings |
|
23,698 |
|
|
|
20,623 |
|
| Accumulated other
comprehensive loss, net of income taxes |
|
(148 |
) |
|
|
— |
|
|
Total shareholders' equity |
|
243,736 |
|
|
|
375,358 |
|
|
Total liabilities and shareholders' equity |
$ |
1,422,492 |
|
|
$ |
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
HoldingCompany(unaudited) |
|
2022InvestmentCompany1 |
|
2021InvestmentCompany1 |
| 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, net of amortization |
|
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 |
|
24,076 |
|
|
|
34,221 |
|
|
|
10,295 |
|
|
Total noninterest income |
|
177,086 |
|
|
|
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 |
|
19,331 |
|
|
|
7,673 |
|
|
|
7,454 |
|
|
Total noninterest expense |
|
143,303 |
|
|
|
66,395 |
|
|
|
62,292 |
|
| Net income before
taxes |
|
48,713 |
|
|
|
38,775 |
|
|
|
85,469 |
|
| Income tax expense |
|
5,748 |
|
|
|
6,464 |
|
|
|
1,327 |
|
|
Net income |
|
42,965 |
|
|
|
32,311 |
|
|
|
84,142 |
|
| Dividends to preferred
shareholders |
|
(1,454 |
) |
|
|
— |
|
|
|
— |
|
| Net income available to common
shareholders |
$ |
41,511 |
|
|
$ |
32,311 |
|
|
$ |
84,142 |
|
| |
|
|
|
|
|
| Earnings per
share: |
|
|
|
|
|
| Basic |
$ |
1.71 |
|
|
$ |
1.34 |
|
|
$ |
3.69 |
|
| Diluted |
$ |
1.70 |
|
|
$ |
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
HoldingCompany(unaudited) |
|
2022InvestmentCompany1 |
|
2021InvestmentCompany1 |
| 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, net of amortization |
|
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 |
|
6,078 |
|
|
|
24,840 |
|
|
|
4,149 |
|
|
Total noninterest income |
|
49,231 |
|
|
|
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 |
|
5,517 |
|
|
|
2,054 |
|
|
|
1,791 |
|
|
Total noninterest expense |
|
35,183 |
|
|
|
19,576 |
|
|
|
17,862 |
|
| Net income before
taxes |
|
17,984 |
|
|
|
4,067 |
|
|
|
19,237 |
|
| Income tax expense |
|
4,623 |
|
|
|
6,289 |
|
|
|
(793 |
) |
|
Net income |
|
13,361 |
|
|
|
(2,222 |
) |
|
|
20,030 |
|
| Dividends to preferred
shareholders |
|
(405 |
) |
|
|
— |
|
|
|
— |
|
| Net income available to common
shareholders |
$ |
12,956 |
|
|
$ |
(2,222 |
) |
|
$ |
20,030 |
|
| |
|
|
|
|
|
| Earnings per
share: |
|
|
|
|
|
| Basic |
$ |
0.53 |
|
|
$ |
(0.09 |
) |
|
$ |
0.84 |
|
| Diluted |
$ |
0.53 |
|
|
$ |
(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 thethree months ended |
|
As of and for theyear ended |
|
(in thousands) |
December 31, 2023 |
|
December 31, 2023 |
| Return on Average
Tangible Common Equity |
|
|
|
| Numerator: Net Income (Loss)
(GAAP) |
$15,150 |
|
$28,213 |
| 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) |
66.7% |
|
35.8% |
| |
|
|
|
| Return on Average
Assets |
|
|
|
| Numerator: Net Income
(GAAP) |
$15,150 |
|
$28,213 |
| Denominator: Average Assets
(non-GAAP) |
601,130 |
|
490,604 |
| Return on Average Assets
(non-GAAP) |
10.0% |
|
5.8% |
| |
|
|
|
| Efficiency
Ratio |
|
|
|
| Numerator: Non-Interest
Expense (GAAP) |
$12,834 |
|
$51,416 |
| Net Interest Income
(GAAP) |
6,589 |
|
17,461 |
| Non-Interest Income
(GAAP) |
30,745 |
|
85,704 |
| Denominator: Total Income |
$37,334 |
|
$103,165 |
| Efficiency Ratio
(non-GAAP) |
34.4% |
|
49.8% |
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):
| Newtek Bank,
NA |
|
As of and for the three months ended |
| (in thousands) |
|
September 30, 2023 |
|
June 30, 2023 |
|
March 31, 2023 |
|
|
|
AsReported1 |
Adjustment |
AsAdjusted |
|
AsReported1 |
Adjustment |
AsAdjusted |
|
AsReported1 |
Adjustment |
AsAdjusted |
| 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) |
|
39.8% |
|
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 thethree months ended |
|
As of and for theyear ended |
| (dollars and number of shares
in thousands) |
December 31, 2023 |
|
December 31, 2023 |
| Return on Average
Tangible Common Equity |
|
|
|
| Numerator: Net Income
(GAAP) |
$13,361 |
|
$42,965 |
| Average Total Shareholders'
Equity (non-GAAP) |
310,965 |
|
241,026 |
| Deduct: Preferred Stock
(GAAP) |
19,738 |
|
19,738 |
| Average Common Shareholders'
Equity (non-GAAP) |
291,227 |
|
221,288 |
| Deduct: Average Goodwill and
Intangibles (non-GAAP) |
31,409 |
|
31,746 |
| Denominator: Average Tangible
Common Equity (non-GAAP) |
$259,818 |
|
$189,542 |
| Return on Tangible Common
Equity (non-GAAP) |
20.4% |
|
22.7% |
| |
|
|
|
| Return on Average
Assets |
|
|
|
| Numerator: Net Income
(GAAP) |
$13,361 |
|
$42,965 |
| Denominator: Average Assets
(non-GAAP) |
1,414,414 |
|
1,323,932 |
| Return on Average Assets
(non-GAAP) |
3.7% |
|
3.2% |
| |
|
|
|
| Efficiency
Ratio |
|
|
|
| Numerator: Non-Interest
Expense (GAAP) |
$35,183 |
|
$143,303 |
| Net Interest Income
(GAAP) |
8,301 |
|
14,930 |
| Non-Interest Income
(GAAP) |
49,231 |
|
177,086 |
| Denominator: Total Income |
$57,532 |
|
$192,016 |
| Efficiency Ratio
(non-GAAP) |
61.2% |
|
74.6% |
| |
|
|
|
| Tangible Book Value
Per Share |
|
|
|
| Total Shareholders' Equity
(GAAP) |
$243,736 |
|
$243,736 |
| Deduct: Goodwill and
Intangibles (GAAP) |
31,316 |
|
31,316 |
| Numerator: Total Tangible Book
Value (non-GAAP) |
$212,420 |
|
$212,420 |
| Denominator: Total Number of
Shares Outstanding |
24,680 |
|
24,680 |
| Tangible Book Value Per Share
(non-GAAP) |
$8.61 |
|
$8.61 |
| |
|
|
|
| Tangible Book Value
Per Common Share |
|
|
|
| Total Tangible Book Value
(non-GAAP) |
$212,420 |
|
$212,420 |
| Deduct: Preferred Stock
(GAAP) |
19,738 |
|
19,738 |
| Numerator: Tangible Book Value
Per Common Share (non-GAAP) |
$192,682 |
|
$192,682 |
| Denominator: Total Number of
Shares Outstanding |
24,680 |
|
24,680 |
| Tangible Book Value Per Common
Share (non-GAAP) |
$7.81 |
|
$7.81 |
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):
| 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 |
| |
AsReported1 |
Adjustment |
AsAdjusted |
|
AsReported1 |
Adjustment |
AsAdjusted |
|
AsReported1 |
Adjustment |
AsAdjusted |
|
Return on Average Tangible Common Equity |
|
|
|
|
|
|
|
|
|
|
|
|
| Numerator: Net Income
(GAAP) |
|
$9,975 |
$944 |
$10,919 |
|
$6,853 |
$158 |
$7,011 |
|
$11,718 |
$(44) |
$11,674 |
| Average Total Shareholders'
Equity (non-GAAP) |
|
224,119 |
6,874 |
230,993 |
|
219,863 |
6,322 |
226,185 |
|
180,707 |
5,900 |
186,607 |
| Deduct: Preferred Stock
(GAAP) |
|
19,738 |
— |
19,738 |
|
19,738 |
— |
19,738 |
|
19,738 |
— |
19,738 |
| Average Common Shareholders'
Equity (non-GAAP) |
|
204,381 |
6,874 |
211,255 |
|
200,125 |
6,322 |
206,447 |
|
160,969 |
5,900 |
166,869 |
| Deduct: Average Goodwill and
Intangibles (non-GAAP) |
|
29,234 |
4,113 |
33,347 |
|
29,631 |
4,031 |
33,662 |
|
28,291 |
3,771 |
32,062 |
| Denominator: Average Tangible
Common Equity (non-GAAP) |
|
$175,147 |
$2,761 |
$177,908 |
|
$170,494 |
$2,291 |
$172,785 |
|
$132,678 |
$2,129 |
$134,807 |
| Return on Tangible Common
Equity (non-GAAP) |
|
22.6% |
|
24.3% |
|
16.1% |
|
16.3% |
|
35.8% |
|
35.1% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Return on Average
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| Numerator: Net Income
(GAAP) |
|
$9,975 |
$944 |
$10,919 |
|
$6,853 |
$158 |
$7,011 |
|
$11,718 |
$(44) |
$11,674 |
| Denominator: Average Assets
(non-GAAP) |
|
1,409,762 |
7,036 |
1,416,798 |
|
1,344,425 |
6,403 |
1,350,828 |
|
1,111,391 |
5,900 |
1,117,291 |
| Return on Average Assets
(non-GAAP) |
|
2.8% |
|
3.1% |
|
2.0% |
|
2.1% |
|
4.2% |
|
4.2% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency
Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
| Numerator: Non-Interest
Expense (GAAP) |
|
$34,545 |
$(3,224) |
$31,321 |
|
$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 |
(1,874) |
41,026 |
|
46,428 |
(2,143) |
44,285 |
|
42,787 |
(241) |
42,546 |
| Denominator: Total Income |
|
$50,977 |
$(1,874) |
$49,103 |
|
$52,101 |
$(2,143) |
$49,958 |
|
$47,370 |
$(241) |
$47,129 |
| Efficiency Ratio
(non-GAAP) |
|
67.8% |
|
63.8% |
|
77.1% |
|
75.6% |
|
82.7% |
|
82.8% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible Book Value
Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
| Total Shareholders' Equity
(GAAP) |
|
$227,023 |
$7,346 |
$234,369 |
|
$221,215 |
$6,401 |
$227,616 |
|
$218,510 |
$6,243 |
$224,753 |
| 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 |
$3,192 |
$203,058 |
|
$193,620 |
$2,329 |
$195,949 |
|
$190,409 |
$2,253 |
$192,662 |
| 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 |
$0.13 |
$8.24 |
|
$7.87 |
$0.09 |
$7.96 |
|
$7.74 |
$0.09 |
$7.83 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible Book Value
Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
| Total Tangible Book Value
(non-GAAP) |
|
$199,866 |
$3,192 |
$203,058 |
|
$193,620 |
$2,329 |
$195,949 |
|
$190,409 |
$2,253 |
$192,662 |
| 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 |
$3,192 |
$183,320 |
|
$173,882 |
$2,329 |
$176,211 |
|
$170,671 |
$2,253 |
$172,924 |
| 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 |
$0.13 |
$7.44 |
|
$7.06 |
$0.10 |
$7.16 |
|
$6.94 |
$0.09 |
$7.03 |
1Certain amounts labeled "As Reported" have been
reclassified to conform to current period presentation.
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