NewtekOne, Inc. (NASDAQ: NEWT) on Digitizing Banking for Independent Business Owners

Why It Matters

Newtek’s digital‑only banking model delivers superior returns and low‑cost services to a massive underserved market, offering investors a high‑yield, high‑growth opportunity as the sector shifts away from traditional branch banking.

Key Takeaways

• Newtek digitized a 63‑year‑old bank, eliminating branches and traditional staff.
• Serves 36,000 depository accounts and 10,000 borrowers among independent owners.
• 2025 ROAA 3.5% and ROCTE in the 30s, far above industry averages.
• Dividend yield ~5.5% with tangible book projected to double in 3.25 years.
• Efficiency ratio 40, indicating scalable, low‑cost banking model.

Summary

NewtekOne’s CEO Barry Sloan explained how the company has transformed a 63‑year‑old chartered bank into a fully digital platform that serves independent business owners, a segment that accounts for roughly 43% of U.S. GDP. The discussion, timed with Newtek’s upcoming Planet MicroCap conference in Las Vegas, highlighted the firm’s unique positioning: 36,000 depository accounts, 10,000 borrowers, and a suite of real‑time payment and lending tools delivered through the Newtek Advantage portal.

Sloan emphasized the financial upside of this model. In 2025 the company posted a 3.5% return on average assets and a return on tangible common equity in the low‑30% range—far outpacing typical banking averages of 1% ROAA and 11‑12% ROCTE. Coupled with a 5.5% dividend yield, a projected tangible book value increase from $6.92 to $13 per share in just over three years, and an efficiency ratio of 40 (versus the industry norm of 50‑60), Newtek demonstrates both profitability and scalability.

Notable remarks underscored the strategic vision: “We do not look like a bank,” Sloan said, noting the firm’s branch‑less, camera‑based service model. He added that the “banks of the future will have a de minimis amount of branches,” positioning Newtek as a fintech‑style solution that outperforms 98% of traditional institutions on cost, speed, and data transparency.

For investors, the combination of high returns, strong balance‑sheet growth, and a niche market underserved by the big four banks suggests a compelling upside if the market re‑prices Newtek at a more mature multiple. The model also promises broader financial inclusion for the millions of small‑to‑mid‑size enterprises that rely on faster, cheaper capital and cash‑management services.

Original Description

In this interview, Barry Sloane, Chairman, President and CEO of NewtekOne, Inc. (NASDAQ: NEWT), discusses the company's evolution, innovative banking solutions, and future growth prospects. Discover how NewTek is transforming financial services for independent business owners and why it presents a compelling investment opportunity.

Chapters:

00:00 Introduction to NewTek and Barry Sloane

02:04 NewTek's Growth and Mission

03:09 Key Highlights and Recent Changes

05:01 Investor Perspective and Business Evolution

07:07 Key Catalysts for 2026

08:32 Future Directions and Customer Focus

NewtekOne, Inc. will be presenting at the upcoming Planet MicroCap Las Vegas 2026 powered by MicroCapClub. Register to attend here: https://www.meetmax.com/sched/event_130817/conference_home.html

For more information about NewtekOne, Inc., please visit: https://www.newtekone.com/

The interview may contain forward looking statements about NewtekOne, Inc. See NewtekOne, Inc.'s periodic filings with the Securities and Exchange Commission for more complete information.

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 independent business owners. Since 1999, NewtekOne has provided state-of-the-art, cost-efficient products and services and efficient business strategies to independent business owners 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, Accounts Receivable Financing & Inventory Financing, Insurance Solutions and Payroll and Benefits Solutions. In addition, NewtekOne offers its clients the Technology Solutions (Cloud Computing, Data Backup, Storage and Retrieval, IT Consulting and Web Services) provided by Intelligent Protection Management Corp. (IPM.com)

Newtek®, NewtekOne®, Newtek Bank®, National Association, Your Business Solutions Company®, One Solution for All Your Business Needs® and Newtek Advantage® are registered trademarks of NewtekOne, Inc.

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