NewtekOne, Inc. reported significant growth in its financial performance for the quarter ending September 30, 2024, compared to the previous fiscal period. Total assets increased to $1.67 billion, up 17.1% from $1.43 billion at the end of 2023. This growth was driven by a substantial rise in loans held for sale, which surged to $242.2 million from $118.9 million, and loans held for investment, which rose to $518.5 million from $336.3 million.

The company’s total deposits also saw a notable increase, reaching $649.5 million, a rise of $185 million from $463.5 million at the end of 2023. Shareholders' equity grew to $281.8 million, up from $249 million, reflecting a robust capital position.

NewtekOne's net income for the nine months ended September 30, 2024, was $32.5 million, or $1.26 per share, down from $36.5 million, or $1.46 per share, in the same period of 2023. The decrease in net income was attributed to a significant income tax expense of $12.4 million, compared to a tax benefit of $5.9 million in the prior year, following the company's conversion to a financial holding company in January 2023.

The company reported a net interest income of $29 million for the nine months ended September 30, 2024, an increase from $18.3 million in the same period of 2023. This growth was supported by a rise in total interest income to $87.7 million, up from $68 million, driven by increased loan originations and higher interest rates. However, the provision for credit losses also increased to $16.7 million from $7.3 million, reflecting the growth in the loan portfolio, particularly in SBA 7(a) loans.

Strategically, NewtekOne is in the process of divesting its subsidiary, NTS, to Paltalk, Inc. for $4 million in cash and shares, with potential earn-out payments based on future performance. The company has also initiated a stock repurchase program, allowing for the repurchase of up to 1 million shares over the next twelve months.

Operationally, NewtekOne has seen an increase in employee headcount from 529 to 570, contributing to higher salary and benefits expenses. The company continues to manage its liquidity and capital resources effectively, with total borrowings of $655.8 million as of September 30, 2024, reflecting a slight increase from the previous period.

Overall, NewtekOne's financial results indicate a strong growth trajectory, despite challenges related to tax expenses and increased provisions for credit losses.