The sharp decline in gain-on-sale income and doubling of credit provisions signal a fundamental shift in earnings quality toward lower-margin net interest income. Monitor the Q1 2027 C&I LA loan securitization for execution risk and the outcome of the strategic alternatives review for potential M&A or restructuring.
Price Chart
Executive Summary
NewtekOne reported Q3 2026 EPS of $0.34, missing the $0.39 consensus estimate by 12.8%, while revenue of $71.8M (total income) was below the $75.8M consensus. Net income available to common shareholders fell to $9.6M from $17.4M a year ago, driven by higher provision for credit losses and lower noninterest income. The company maintained its 2026 EPS guidance range of $1.70-$1.80 and highlighted strong deposit growth and balance sheet expansion.
Key Financial Metrics
Key Facts
- Q3 2026 GAAP diluted EPS of $0.34 vs $0.67 in Q3 2025, down 49% YoY
- EPS of $0.34 missed consensus estimate of $0.39 by 12.8%
- Total income (net interest income + noninterest income) of $71.8M vs $75.8M consensus revenue estimate
- Net income available to common shareholders fell to $9.6M from $17.4M in Q3 2025
- Provision for credit losses nearly doubled to $15.4M from $7.7M a year ago
- Net gains on sales of loans collapsed to $32K from $9.6M in Q3 2025
- Net interest income grew 30% YoY to $18.9M, but net interest margin compression evident
- Total deposits grew 126% YoY to $2.5B, with insured deposits at 79%
- Company maintained 2026 EPS guidance of $1.70-$1.80
- Book value per common share rose 9.2% YoY to $12.80; tangible book value per common share up 9.6% to $12.30
- CEO stated company is exploring strategic alternatives to unlock value
Financial Impact
EPS miss of 12.8% vs consensus; net income down 40% YoY on a GAAP basis; provision for credit losses up 100% YoY
Risk Factors
- EPS miss of 12.8% may trigger negative analyst revisions and price target cuts
- Provision for credit losses doubled YoY, signaling potential credit quality deterioration in the loan portfolio
- Gain-on-sale income collapsed to near zero, removing a key earnings driver from prior periods
- Efficiency ratio worsened to 58.7% from 56.3% a year ago, indicating higher cost to generate revenue
- ROAE fell to 9.2% from 20.4% a year ago, reflecting lower profitability on equity
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3390721 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 1d ago | 8-K | No price | awaiting T+5 | awaiting T+5 | No price |
Oct 28, 2026 1d ago | Press Release | $11.09 | awaiting T+5 | awaiting T+5 | $11.01 (+0.76%) |
Oct 21, 2026 8d ago | 8-K | $11.62 $11.01 | ▼ −5.25% | ▼ −5.96% | $11.01 (−5.25%) |
Oct 15, 2026 14d ago | Press Release | $10.94 | awaiting T+5 | awaiting T+5 | $11.01 (+0.64%) |
Sep 14, 2026 6w ago | 8-K | $12.26 $11.64 | ▼ −5.06% | ▼ −6.72% | $11.01 (−10.20%) |
Aug 28, 2026 8w ago | Press Release | $11.91 $12.44 | ▲ +4.45% | ▲ +4.34% | $11.01 (−7.56%) |
Jul 22, 2026 14w ago | EFFECT | $14.73 $14.74 | ▲ +0.07% | ▲ +2.47% | $11.01 (−25.25%) |
Jun 25, 2026 18w ago | S-3 | $14.69 $14.57 | ▼ −0.82% | ▼ −2.98% | $11.01 (−25.05%) |
Jun 16, 2026 19w ago | Insider Cluster | $13.92 $14.14 | ▲ +1.58% | ▲ +3.81% | $11.01 (−20.91%) |
Jun 15, 2026 19w ago | Insider Cluster | $13.72 $13.74 | ▲ +0.15% | ▲ +1.53% | $11.01 (−19.75%) |
US Market Status
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