NewtekOne Q4 2025 NewtekOne Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 NewtekOne Earnings Call
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I would now like to hand the call over to Barry Sloane president and CEO. Please go ahead.
Speaker #1: To remove yourself from the queue, you may press star one one again. I would now like to hand the call over to Barry Sloane, President and CEO. Please go ahead.
Speaker #1: ahead. Thank you very much,
Barry Sloane: Thank you very much, Operator, and welcome everyone to the Q4 2025 Financial Results Conference Call. Joining me today on the call is Frank DeMaria, Executive Vice President and Chief Financial Officer of NewtekOne.
Speaker #2: Operator, and welcome everyone to the 2025 financial results conference call. Joining me today on the call is Frank DeMaria, Executive Vice President and Chief Financial Officer of NewtekOne.
Thank you very much, operator and welcome everyone to the fourth quarter, 2025 Financial results conference call joining me. Today on the call is Frank de Maria Executive Vice President and Chief Financial Officer of new Tech 1. For those of you that would like to follow the presentation online, go to new tech, 1.com go to the investor relations section and the PowerPoint presentation. Uh, for today's event is being held there.
Speaker #2: For those of you that would like to follow the presentation online, go to newtekone.com, go to the Investor Relations section, and the PowerPoint presentation for today's event is being held there.
Barry Sloane: For those of you that would like to follow the presentation online, go to NewtekOne.com, go to the Investor Relations section, and the PowerPoint presentation for today's event is being held there. I'd now like to ask everybody to go to slide number 2 of that presentation and note the forward-looking statements. To begin our presentation today, we're happy to report the results of Q4 2025 and the annual achievements for 2025, including, but not limited to, celebrating the 3-year anniversary of NewtekOne owning and operating an OCC chartered bank. We're extremely pleased about the acquisition that was done in January of 2023. There's a very interesting slide on Q4, which actually names several competitors in the space: SoFi, Live Oak, Triumph, Northeast Bank, and Axos.
For those of you that would like to follow the presentation online, go to NewtekOne.com, go to the Investor Relations section, and the PowerPoint presentation for today's event is being held there. I'd now like to ask everybody to go to slide number 2 of that presentation and note the forward-looking statements. To begin our presentation today, we're happy to report the results of Q4 2025 and the annual achievements for 2025, including, but not limited to, celebrating the 3-year anniversary of NewtekOne owning and operating an OCC chartered bank. We're extremely pleased about the acquisition that was done in January of 2023. There's a very interesting slide on Q4, which actually names several competitors in the space: SoFi, Live Oak, Triumph, Northeast Bank, and Axos.
I'd now like to ask everybody to go to slide number 2 of that. Presentation and note the forward-looking statements
To begin our presentation. Today, we're happy to report the results of.
Speaker #2: I'd now like to ask everybody to go to slide number two of that presentation, and note the forward-looking statements. To begin our presentation today, we're happy to report the results of Q4 2025 and the annual achievements for 2025, including, but not limited to, celebrating the three-year anniversary of NewtekOne owning and operating an OCC-chartered bank.
Q4 2025 in the annual achievements for 2025 including to, but are not limited to celebrating the 3-year anniversary of new Tech, 1 only owning and operating an OCC Chartered Bank.
Speaker #2: We're extremely pleased about the acquisition that was done in January of 2023. It is a very interesting slide on '24, which actually names several competitors in the space.
Speaker #2: SoFi, Live Oak, Triumph, Northeast Bank, and Axos. And if you take a look at those charts, you'll see how their stock price action moved over the first several years.
Barry Sloane: If you take a look at those charts, you'll see how their stock price action moved over the first several years of their operation, and then it started to change direction. We'll talk about that later in the presentation. We're also celebrating today opening up 9,000 new depository accounts and 34,000 active depository accounts. We're celebrating the technology that we have built, particularly our digital account opening and our lending operating systems, as well as the Newtek Advantage. All of these off-balance sheet technological innovations are really important to serving our clients and being able to offer a true technology-enabled financial institution for independent business owners all across the United States to work with. We are celebrating our leading status as a lender to independent businesses.
If you take a look at those charts, you'll see how their stock price action moved over the first several years of their operation, and then it started to change direction. We'll talk about that later in the presentation. We're also celebrating today opening up 9,000 new depository accounts and 34,000 active depository accounts. We're celebrating the technology that we have built, particularly our digital account opening and our lending operating systems, as well as the Newtek Advantage. All of these off-balance sheet technological innovations are really important to serving our clients and being able to offer a true technology-enabled financial institution for independent business owners all across the United States to work with. We are celebrating our leading status as a lender to independent businesses.
Speaker #2: Of their operation, and then it started to change direction. We'll talk about that later in the presentation. We're also celebrating today opening up 9,000 new depository accounts.
Speaker #2: And 34,000 active depository accounts. We're celebrating the technology that we have built, particularly our digital account opening and our lending operating systems, as well as the Newtek Advantage.
We're extremely pleased about, uh, the acquisition that was done in January of 2023 and is a very interesting slide on 24, which actually names several competitors in the space so far Live, Oak Triumph, uh, Northeast Bank and axis. And if you take a look at those charts, you'll see how their stock price action, um, moved over the first several years of their operation. And then it started to change direction. We'll talk about that later. In the presentation, we're also celebrating today, opening up 9,000 new depository accounts and 34,000, active depository accounts. We're celebrating the technology that we have built, particularly our digital account opening, and our lending operating systems, as well as the new tech Advantage. All of these off-balance sheet. Technological innovations are really important to serving our clients and being able to offer a true technology enabled financial institution.
Speaker #2: All of these off-balance sheet technological innovations are really important to serving our clients and being able to offer a true technology-enabled financial institution for independent business owners all across the United States to work with.
Speaker #2: We are celebrating our leading status as a lender to independent businesses. We refer to our lending programs as an adult loan. Loans that have repayment of principal over 10 to 25 years.
Barry Sloane: We refer to our lending programs as an adult loan, loans that have repayment of principal over 10 to 25 years, not the 6-month to 24-month paybacks with 30% to 80% interest charges or effective yields to the customer. Lower monthly payments, patient capital makes these loans exceptionally affordable to our clients. We're celebrating many new hires that were added to the senior management team: Greg Devaney, Chief Credit Officer of the bank; Chris Lucas, Chief Compliance Officer of the bank; Frank DeMaria, Chief Financial Officer of the bank; Andrew Kaplan, Chief Strategy Officer of NewtekOne, our holding company. We're also celebrating record earnings and revenue growth.
We refer to our lending programs as an adult loan, loans that have repayment of principal over 10 to 25 years, not the 6-month to 24-month paybacks with 30% to 80% interest charges or effective yields to the customer. Lower monthly payments, patient capital makes these loans exceptionally affordable to our clients. We're celebrating many new hires that were added to the senior management team: Greg Devaney, Chief Credit Officer of the bank; Chris Lucas, Chief Compliance Officer of the bank; Frank DeMaria, Chief Financial Officer of the bank; Andrew Kaplan, Chief Strategy Officer of NewtekOne, our holding company. We're also celebrating record earnings and revenue growth.
For independent business owners, all across the United States to work with. We are celebrating our leading status, as a lender to Independent businesses, we refer to our lending programs, as an adult loan loans that have repayment of principal over 10 to 25 years. Not the 6-month to 24-month paybacks with 30 to 80% interest charges or effective yields to the customer lower monthly payments, patient capital.
Makes these loans exceptionally affordable to our clients.
Speaker #2: Not the six-month to 24-month paybacks with 30% to 80% interest charges or effective yields to the customer. Lower monthly payments, patient capital, makes these loans exceptionally affordable to our clients.
We're celebrating many new hires that went, that were added to the senior manager team. Greg dainy Chief credit officer in the bank. Chris Lucas Chief compliance officer in the bank, Frank de Maria.
Speaker #2: We're celebrating many new hires that were added to the senior management team: Greg Devaney, Chief Credit Officer of the bank; Chris Lucas, Chief Compliance Officer of the bank.
Speaker #2: Frank DeMaria, Chief Financial Officer of the bank. Andrew Kaplan, Chief Strategy Officer of NewtekOne, our holding company. We're also celebrating record earnings and revenue growth.
Uh, Chief Financial Officer of the bank, uh, Andrew Kaplan, Chief strategy, officer of new Tech, 1 are holding company. We're also celebrating record, earnings and revenue growth like to report that as a financial holding company, Net Income before taxes for 2025 was approximately 80 million of 16.4%.
Speaker #2: I'd like to report that, as a financial holding company, net income before taxes for 2025 is approximately $80.0 million. And our total revenue is defined as the sum of net interest income and non-interest income: $284.0 million, up over the 2024 number of $257 million.
Barry Sloane: I'd like to report that as a financial holding company, net income before taxes for 2025 was approximately $80 million of 16.4%, and our revenue, total revenue, as defined as the sum of net interest income and non-interest income, $284 million of 10.6% over the 2024 number of $257 million. We're very pleased with how we did with all that. I guess we can go right to the Q&A. Just kidding. Let's go to slide 3. So on slide 3, we particularly and historically have talked about the company's focus, which has been on the independent business owner, on SMBs. It's extremely important that the marketplace understands that this is our demographic. It is an underserved demographic, and it's been Newtek's primary focus from its inception as a private company in 1998 and a publicly traded company in September 2000.
I'd like to report that as a financial holding company, net income before taxes for 2025 was approximately $80 million of 16.4%, and our revenue, total revenue, as defined as the sum of net interest income and non-interest income, $284 million of 10.6% over the 2024 number of $257 million. We're very pleased with how we did with all that. I guess we can go right to the Q&A. Just kidding. Let's go to slide 3. So on slide 3, we particularly and historically have talked about the company's focus, which has been on the independent business owner, on SMBs. It's extremely important that the marketplace understands that this is our demographic. It is an underserved demographic, and it's been Newtek's primary focus from its inception as a private company in 1998 and a publicly traded company in September 2000.
Our Revenue, total revenue is defined as a sum of net interest income and non-interest income 284 million of 10.6% over the 2024 number of 257 million. Um, we're very pleased with how we did with all that. I guess we can go right to the Q&A, just kidding. Let's go to slide number 3.
Speaker #2: We're very pleased with how we did with all that. I guess we can go right to the Q&A. Just kidding. Let's go to slide number three.
Speaker #2: So on slide number three, we particularly—and historically—have talked about the company's focus, which has been on the independent business owner, on SMBs; it's extremely important that the marketplace understands that this is our demographic.
So on slide number 3, we uh, are we particularly and historically have talked about the company's Focus which has been on the independent business owner on smbs. It's extremely important that, uh, the marketplace understands that this is our demographic. It is an underserved demographic. Um, and it's been new Tech's, primary focus from its Inception as
Speaker #2: It is an underserved demographic. And it's been Newtek's primary focus from its inception as a private company in 1998, and as a publicly traded company in September of 2000.
The private company in 1998 and a publicly traded company. In, in September of 2000, we believe we have better loans with long. Amortizations, and more flexibility, we believe we have a better banking product with absolutely zero fee
Speaker #2: We believe we have better loans with long amortizations and more flexibility. We believe we have a better banking product with absolutely zero fee—no asterisks, no ifs, ands, no buts.
Barry Sloane: We believe we have better loans with long amortizations and more flexibility. We believe we have a better banking product with absolutely zero fee, no asterisks, no ifs, ands, no buts, better payroll solutions that are integrated in our bank account with a dedicated concierge person that you can get on camera. Our insurance agency offers a frictionless opportunity for our clients to access all forms of insurance, both personal and business. Going to slide number 4, we talk about our financial structure and product solutions. Obviously, in our history, in 2000 to 2014, we were a 1933 Act company. In November 2014, we converted to a BDC, and in 2023, when we acquired National Bank of New York City, a $180 million total asset bank that today is approximately $1.4 or 1.5 billion, with the whole consolidated assets $2.4 to 2.5 billion, we have grown significantly.
We believe we have better loans with long amortizations and more flexibility. We believe we have a better banking product with absolutely zero fee, no asterisks, no ifs, ands, no buts, better payroll solutions that are integrated in our bank account with a dedicated concierge person that you can get on camera. Our insurance agency offers a frictionless opportunity for our clients to access all forms of insurance, both personal and business. Going to slide number 4, we talk about our financial structure and product solutions. Obviously, in our history, in 2000 to 2014, we were a 1933 Act company. In November 2014, we converted to a BDC, and in 2023, when we acquired National Bank of New York City, a $180 million total asset bank that today is approximately $1.4 or 1.5 billion, with the whole consolidated assets $2.4 to 2.5 billion, we have grown significantly.
Insurance, both personal and business.
Speaker #2: Better payroll solutions that are integrated in our bank account, with a dedicated concierge person that you can get on camera. Our insurance agency offers a frictionless opportunity for our clients to access all forms of insurance, both personal and business.
Speaker #2: Going to slide number four, we talk about our financial structure and product solutions. Obviously, in our history, from 2000 to 2014, we were an 1833 Act company.
Speaker #2: And in November of 2014, we converted to a BDC. And in 2023, when we acquired National Bank of New York City, a $180 million total asset bank that today is approximately $1.41 billion, with the holdco consolidated assets at $2.42 billion, we have grown significantly.
Going to slide number 4. We talk about our financial structure and product Solutions. Obviously, in our history in 2000 to 2014, we're a 1933 act company in 2014 of November. We converted to a BDC and in 2023, when we acquired National Bank of New York City and 180 million total asset bank. That today is approximately 1.415 billion with the hold code, Consolidated assets, 2.4 2.5 billion, we have grown significantly but it's important to note that we have changed our financial structure. And with that, you had turnover of, um,
Speaker #2: But it's important to note that we have changed our financial structure. And with that, you've had turnover of equity shareholders as well. The holdco is regulated by the Federal Reserve.
Barry Sloane: But it's important to note that we have changed our financial structure, and with that, you've had turnover of equity shareholders as well. The whole company is regulated by the Federal Reserve. The bank is regulated by the OCC. We utilize proprietary and patented advanced technological solutions to acquire customers cost-effectively and to manage our business. We have a full menu best-in-class on-demand business and financial solutions to independent business owners. Our trademark: no branches, no traditional bankers, no brokers, no BDOs. Very cost-effective way to service our customers on demand. Let's go to slide number five. We talk about our target market. At the end of the day, the SBA defines this as 36 million businesses in the United States, 43% of non-farm GDP, and we believe this market is typically underserved, untapped, and we offer our best-of-breed solutions to this customer base.
But it's important to note that we have changed our financial structure, and with that, you've had turnover of equity shareholders as well. The whole company is regulated by the Federal Reserve. The bank is regulated by the OCC. We utilize proprietary and patented advanced technological solutions to acquire customers cost-effectively and to manage our business. We have a full menu best-in-class on-demand business and financial solutions to independent business owners. Our trademark: no branches, no traditional bankers, no brokers, no BDOs. Very cost-effective way to service our customers on demand. Let's go to slide number five. We talk about our target market. At the end of the day, the SBA defines this as 36 million businesses in the United States, 43% of non-farm GDP, and we believe this market is typically underserved, untapped, and we offer our best-of-breed solutions to this customer base.
Speaker #2: The bank is regulated by the OCC. We utilize proprietary and patented advanced technological solutions to acquire customers cost-effectively and to manage our business. We have a full menu of best-in-class, on-demand business and financial solutions for independent business owners.
Speaker #2: Our trademark: no branches, no traditional bankers, no brokers, no BDOs. Very cost-effective way to service our customers on demand. Let's go to slide number five.
Equity shareholders as well. The holdco is, uh, regulated by the Federal Reserve, the bank is regulated by the OC, we utilize proprietary and patented Advanced technological solutions to acquire customers across effectively, and to manage our business. We have a full menu best-in-class on demand business and Financial Solutions to Independent business owners. Our trademark. No branches know traditional Bankers, know Brokers, no bdos. Very cost-effective way to service our customers on demand. Let's go to slide number 5, we talk about our Target Market at the end of the day. The SBA defined this at 36 million businesses named.
Speaker #2: We talk about our target market. At the end of the day, the SBA defines this as 36 million businesses in the United States, 43% of non-farm GDP, and we believe this market is typically unfarmed, untapped, and we offer our best-of-breed solutions to this customer base, and we're very excited about what we've been able to do in the first three years of operating the OCC-chartered bank.
United States 43% of non-farm GDP and we believe this Market is typically funded untapped and we offer our best of breed solutions to this customer base. Uh and we're very excited about what we've been able to do in the first 3 years of operating. Um
Barry Sloane: We're very excited about what we've been able to do in the first 3 years of operating the OCC chartered bank, and we're very excited about our future. On slide number 6, we'll talk about the annual and quarterly highlights. The EPS for the quarter: $0.65, either basic or diluted, which aggregated up to a 2025 number, basic $2.21, diluted $2.18, up 12% and 11%, 12% and 11% over the 2024 results. We're pleased to offer our 2026 guidance with a mid-range of $2.35, quite interesting at a $14 stock price handle what our multiple is compared to some of those other competitors in the marketplace that I would also call technology-enabled banks with a disruptive business plan and new entrants into the market, but began many years before we did. The bullet point number 3 on slide number 6 is important: tangible book value.
We're very excited about what we've been able to do in the first 3 years of operating the OCC chartered bank, and we're very excited about our future. On slide number 6, we'll talk about the annual and quarterly highlights. The EPS for the quarter: $0.65, either basic or diluted, which aggregated up to a 2025 number, basic $2.21, diluted $2.18, up 12% and 11%, 12% and 11% over the 2024 results. We're pleased to offer our 2026 guidance with a mid-range of $2.35, quite interesting at a $14 stock price handle what our multiple is compared to some of those other competitors in the marketplace that I would also call technology-enabled banks with a disruptive business plan and new entrants into the market, but began many years before we did. The bullet point number 3 on slide number 6 is important: tangible book value.
Speaker #2: And we're very excited about our future. On slide number six, we'll talk about the annual and quarterly highlights. The EPS for the quarter: $0.65, either basic or diluted.
Speaker #2: Which aggregated up to a 2025 number—basic $2.21, diluted $2.18—up 12.11%, 12.11% over the 2024 results. We're pleased to offer our 2026 guidance with a mid-range of $2.35.
Speaker #2: Quite interesting, at a $14 stock price handle, what our multiple is compared to some of those other competitors in the marketplace. But I would also call technology-enabled banks with a disruptive business plan and new entrants into the market, but began many years before we did.
The OC Chartered bank, and we're very excited about our future on slide. Number 6, we'll talk about the annual and quarterly highlights. The EPS for the quarter, 65 cents, either basic or diluted, which, uh, aggregated up to a 2025 number. Basic 2.221, diluted $2.18 of 12 and 11%, uh, 12 and 11% over the 2024 results. We're pleased to offer our 2026 Guidance with the mid-range of $2.35, quite interesting at a 14-day. Um, what our multiple is compared to some of those other competitors in the marketplace that I would also call technology enabled banks with a disruptive business plan and then and new entrance into the market, but began many years before we did.
Speaker #2: The bullet point number three on slide number six is important. Tangible book value. We've been able to materially grow our tangible book value, which ended the year 2025 at $12.19. When we began, I think it was approximately $6.92.
Barry Sloane: We've been able to materially grow our Tangible Book Value, which ended the year 2025 at $12.19 when we began; I think it was approximately $6.92. In addition, we've also paid a dividend during that period of time, which we'll talk about in a future slide. 2026 got off to a great start. On 21 January, we closed our largest securitization on what we refer to as our Alternative Loan Program, also known as C&I Loans Held for Sale or C&I LA, meaning longer amortization. These are basically business loans with long Ms, and this is what we have experienced well over two decades in making these types of loans, whether it was being in a 7(a) program or in the ALP program. We started originating these loans in 2018 and 2019.
We've been able to materially grow our Tangible Book Value, which ended the year 2025 at $12.19 when we began; I think it was approximately $6.92. In addition, we've also paid a dividend during that period of time, which we'll talk about in a future slide. 2026 got off to a great start. On 21 January, we closed our largest securitization on what we refer to as our Alternative Loan Program, also known as C&I Loans Held for Sale or C&I LA, meaning longer amortization. These are basically business loans with long Ms, and this is what we have experienced well over two decades in making these types of loans, whether it was being in a 7(a) program or in the ALP program. We started originating these loans in 2018 and 2019.
The bullet point number 3 on slide. Number 6, is important tangible Book value. We've been able to materially grow our tangible Book value, which ended the year 2025 at $12.19 when we began, I think it was approximately $6.92 in addition. We've also paid, uh, a dividend during that period of time which we'll talk about in a future slide.
Speaker #2: In addition, we've also paid a dividend during that period of time, which we'll talk about in a future slide. 2026 got off to a great start.
Speaker #2: On January 21st, we closed our largest securitization on what we refer to as our alternative loan program, also known as CNI loans held for sale, or CNILA, meaning longer amortization.
Speaker #2: These are basically business loans with long Ms. And this is what we have experienced well over two decades in making these types of loans.
Speaker #2: Whether it was been in a 7(a) program or in the ALP program, we started originating these loans in 2018 and 2019. The deal that we kicked off in 2026 was 10 times oversubscribed, 38 institutions subscribing, 32 institutions purchasing notes, after we repriced after the IPT.
Barry Sloane: The deal that we kicked off in 2026 was 10 times oversubscribed, 38 institutions subscribing, 32 institutions purchasing notes after we repriced after the IPT, and really pleased that 10 of the 32 purchasing institutions were new to our securitizations. We have a lot of ALP momentum growing, and the credit quality matrix overall on the entire portfolio on a consolidated basis, including the bank, including the old NSBF portfolio at the holding company and all loans, as we have indicated in prior press releases, seems to have stabilized. NPLs have declined for two consecutive quarters from 7.3% to 7.1% and to 6.9% for the Q4 of 2025. Slide number seven. We talked about this a little while earlier, and that's deposit growth.
The deal that we kicked off in 2026 was 10 times oversubscribed, 38 institutions subscribing, 32 institutions purchasing notes after we repriced after the IPT, and really pleased that 10 of the 32 purchasing institutions were new to our securitizations. We have a lot of ALP momentum growing, and the credit quality matrix overall on the entire portfolio on a consolidated basis, including the bank, including the old NSBF portfolio at the holding company and all loans, as we have indicated in prior press releases, seems to have stabilized. NPLs have declined for two consecutive quarters from 7.3% to 7.1% and to 6.9% for the Q4 of 2025. Slide number seven. We talked about this a little while earlier, and that's deposit growth.
2026 got off to a great start on January 21st, we closed our largest Security on what we refer to as alternative Loan program. Also known as cni loans held for sale or cni La meaning longer amortization. These are basically business loans with long amps and this is what we have experienced well over 2 decades, in making these types of loans, whether it was been in the 78 program or in the Alp program, we started originating loans in 2018 and 2019 the deal that we kicked off in 2026 was 10 times over subscribed, 38 institutions subscribing, 32 institutions, purchasing notes after we repriced after the ipt and um really pleased that 10 of the 32 purchasing institutions were new to our securiser portfolio.
Speaker #2: And really pleased that 10 of the 32 purchasing institutions were new to our securitizations. We have a lot of ALP momentum growing. And the credit quality matrix overall on the entire portfolio on a consolidated basis.
Speaker #2: Including the bank, including the old NSBF portfolio with the holding company and all loans, as we have indicated in prior press releases, seems to have stabilized.
Folio on a Consolidated basis including the bank, including the old nspf portfolio. With the holding company, all loans. As we have indicated in Prior press releases seems to have stabilized. Npls have declined for 2 consecutive quarters for 7.3 to 7.1 and the 6.9% for the fourth quarter of 2025
slide number 7,
Speaker #2: NPLs have declined for two consecutive quarters. The 7.3, the 7.1, and the 6.9% for the fourth quarter of 2025. Slide number seven. We talked about this a little while earlier, and that's deposit growth.
Speaker #2: I remember one of the things in acquiring the bank, people said, "How are you going to grow deposits?" Well, with our alliance partners and relationships, 9,000 deposit accounts in the fourth quarter, surpassing our previous record.
Barry Sloane: I remember one of the things in acquiring the bank, people said, "How are you going to grow deposits?" Well, with our alliance partners and relationships, 9,000 deposit accounts in the Q4 surpassing our previous record. Business deposits increased, and these are the important ones because they're at a lower cost, by $34 million in the quarter and $164 million for the year. So very, very nice growth. Obviously, consumer deposits growing materially as well, by $167 million in the quarter, $293 million for the year. We have a nice big deposit base going into the Q1 to be able to deploy in business loans. Since the acquisition of Newtek Bank, roughly 50% of Newtek's bank business lending clients have opened up a business deposit account.
I remember one of the things in acquiring the bank, people said, "How are you going to grow deposits?" Well, with our alliance partners and relationships, 9,000 deposit accounts in the Q4 surpassing our previous record. Business deposits increased, and these are the important ones because they're at a lower cost, by $34 million in the quarter and $164 million for the year. So very, very nice growth. Obviously, consumer deposits growing materially as well, by $167 million in the quarter, $293 million for the year. We have a nice big deposit base going into the Q1 to be able to deploy in business loans. Since the acquisition of Newtek Bank, roughly 50% of Newtek's bank business lending clients have opened up a business deposit account.
Speaker #2: Business deposits increased, and these are the important ones because they're at a lower cost, by $34 million in the quarter, and $164 million for the year.
Speaker #2: So, very, very nice growth. Obviously, consumer deposits growing materially as well—by $167 million in a quarter, $293 million for the year. We have a nice big deposit base going into the first quarter to be able to deploy in business loans.
This is deposits increase. And these are the important ones because they're at a lower cost like 34 million and a quarter and 164 million for the year. So very, very nice growth. Obviously consumer deposits growing materially as well by 167 million and a quarter 293 million for the year. We have a nice big deposit base going into the first quarter to be able to deploy in business loans. Since the acquisition of new tick bankrupt roughly, 50% of a new tech Bank business. Lending clients have opened up a business deposit account.
Speaker #2: Since the acquisition of Newtek Bank, roughly 50% of Newtek’s bank business lending clients have opened up a business deposit account. In addition, we started initiating the offering of keyman life insurance to Newtek Bank business lending clients.
Barry Sloane: In addition, we started initiating the offering of life insurance, Keyman Life, to Newtek Bank business lending clients, and 25% of borrowers have now purchased life insurance through the Newtek agency. We continue to capture operating leverage. The efficiency ratio at the whole co declined from 63.2 to 58.3, with assets up 33%. So we're very, very pleased about our efficiency ratio. At the bank, I believe the efficiency ratio is in the 40s, I think approximately 47%. Our return on average assets for the calendar year, 2.78% at the holding company. Also important to note, the earnings headwinds, which we'll talk about this a little deeper in a further slide, from our NSBF lending subsidiary continue to decline.
In addition, we started initiating the offering of life insurance, Keyman Life, to Newtek Bank business lending clients, and 25% of borrowers have now purchased life insurance through the Newtek agency. We continue to capture operating leverage. The efficiency ratio at the whole co declined from 63.2 to 58.3, with assets up 33%. So we're very, very pleased about our efficiency ratio. At the bank, I believe the efficiency ratio is in the 40s, I think approximately 47%. Our return on average assets for the calendar year, 2.78% at the holding company. Also important to note, the earnings headwinds, which we'll talk about this a little deeper in a further slide, from our NSBF lending subsidiary continue to decline.
Speaker #2: And 25% of borrowers have now purchased life insurance through the Newtek agency. We continue to capture operating leverage. The efficiency ratio at the holdco declined from 63.2 to 58.3.
Speaker #2: With assets up 33%, we're very, very pleased about our efficiency ratio. At the bank, I believe the efficiency ratio is in the 40s.
Speaker #2: I think approximately 47%. Our return on average assets for the calendar year is 2.78% at the holding company. Also important to note, the earnings had wins, which we'll talk about a little deeper in a further slide.
Addition, we started initiating the offering of life insurance key man life to new tech Bank business. Lending clients and 25% of borrowers, have now purchased life insurance, through the new tech agency, we continue to capture operating, leverage the efficiency ratio at the holdco. Uh, was the client from 63.2 to 58.3 with assets of 33%. So a very, very pleased about our efficiency ratio at the bank, I believe the efficiency ratio is in the 40s. Think approximately 47%, our return on average assets for the calendar year. 2.78 percent at the holding company also important to note the earnings headwind, which we'll talk about this. A little deeper in a further slide from our NBF lending. Subsidiary continue, uh,
Speaker #2: From our NSBF lending subsidiary, results continue to decline. We had a $28.7 million loss in 2024, and it should be approximately $20 million in 2025.
Barry Sloane: We had a $28.7 million loss in 2024, and it should be approximately $20 million in 2025, and we expect the NSBF loss will continue to materially decline throughout 2026. On slide number 8, we talk about our tangible book value growth. I think it's real important to analyze. Obviously, we paid $2.24 of dividends during our period of time as a bank holding company, although we don't look like a bank holding company, and we don't look like a lot of the other community banks that we're compared to, and a $4.76 share of tangible book value since conversion. So we're very, very pleased at how we've been able to deliver value to shareholders through growth in tangible book value and dividends. Slide number 9, we talked about the Alternative Loan Program. We'll drill down a little deeper here.
We had a $28.7 million loss in 2024, and it should be approximately $20 million in 2025, and we expect the NSBF loss will continue to materially decline throughout 2026. On slide number 8, we talk about our tangible book value growth. I think it's real important to analyze. Obviously, we paid $2.24 of dividends during our period of time as a bank holding company, although we don't look like a bank holding company, and we don't look like a lot of the other community banks that we're compared to, and a $4.76 share of tangible book value since conversion. So we're very, very pleased at how we've been able to deliver value to shareholders through growth in tangible book value and dividends. Slide number 9, we talked about the Alternative Loan Program. We'll drill down a little deeper here.
Speaker #2: And we expect the NSBF loss will continue to materially decline throughout 2026. On slide number eight, we talk about our tangible book value growth.
Speaker #2: I think it's real important to analyze. Obviously, we paid $2.24 of dividends. During our period of time as a bank holding company—although we don't look like a bank holding company, and we don't look like a lot of the other community banks that we're compared to.
To decline. We had a 28.7 million dollar loss in 2024 and it should be approximately 20 million in 2025, and we expect the NSB of loss will continue to materially decline throughout 2026 on slide. Number 8. Uh, we talked about our tangible Book value growth, I think it's real important to analyze. Obviously, we paid $224 cents of dividends during our, uh, period of time as a bank holding company. Although we don't look like a bank holding company and we don't look like a lot of the other community banks that were compared to and a $4.76 share of tangible Book value since conversion. So we're very, very pleased at how we've been able to deliver value. To shareholders through growth in tangible, Book value, and dividends
Speaker #2: And a $4.76 share of tangible book value since conversion. So we're very, very pleased at how we've been able to deliver value to shareholders through growth in tangible book value.
Slide number 9.
Speaker #2: And dividends. Slide number nine. We talked about the Alternative Loan Program. We'll drill down a little deeper here. I think it's important to note—and I have been asked by several investors—the credit quality for ALP loans is much stronger than the 7(a) loans.
Barry Sloane: I think it's important to note, and I have been asked by several investors, the credit quality for ALP loans is much stronger than the 7(a) loans. We'll show that on the next slide. The ALP loans are originated with the intention to sell them into a joint venture or securitizations. They have great margins on them. They have prepay penalties, so they last for a longer period of time. The spread that we get on them is enjoyed by the benefit of our shareholders and our earnings. I think it's important to note that similar to 7(a) loans, there is a structural similarity to the ALP loans: 10- to 25-year Ms, no balloons. They're typically fixed for 5 years with a spread over the 5-year treasury curve of approximately 950 basis points at origination. Then they adjust.
I think it's important to note, and I have been asked by several investors, the credit quality for ALP loans is much stronger than the 7(a) loans. We'll show that on the next slide. The ALP loans are originated with the intention to sell them into a joint venture or securitizations. They have great margins on them. They have prepay penalties, so they last for a longer period of time. The spread that we get on them is enjoyed by the benefit of our shareholders and our earnings. I think it's important to note that similar to 7(a) loans, there is a structural similarity to the ALP loans: 10- to 25-year Ms, no balloons. They're typically fixed for 5 years with a spread over the 5-year treasury curve of approximately 950 basis points at origination. Then they adjust.
Speaker #2: We'll show that on the next slide. And the ALP loans are originated with the attention to sell them into a joint venture or securitizations.
We talked about the alternative Loan program. We'll drill down a little deeper here. I think it's important to note and I have been asked by several investors. The credit quality for Alp loans is much stronger than the 7A loans. We'll show, we'll show that on the next slide. And the Alp loans are originated with the attention to sell them into a joint venture or auriza have prepay penalties. So, they last, for a longer period of time. So, the spread that we get on them is enjoyed, uh, by the benefit of our shareholders and our our
Speaker #2: They have great margins on them. They have prepay penalties, so they last for a longer period of time. So the spread that we get on them is enjoyed by the benefit of our shareholders and our earnings.
Speaker #2: I think it's important to note that, similar to 7(a) loans, there is a structural similarity to the ALP loans: 10- to 25-year maturities, no balloons.
Speaker #2: They're typically fixed for five years, with a spread over the five-year Treasury curve of approximately 950 basis points at origination. And then they adjust.
Speaker #2: They're floored at that initial rate, and they can adjust up based upon changes of rates. So we give the borrower flexibility in amortizing the principal over a longer period of time.
Barry Sloane: They're floored at that initial rate, and they could adjust up based upon changes of rates. So we give the borrower flexibility in amortizing the principal over a longer period of time, so we're basically giving them equity. We give them flexibility on distributions. We give them flexibility on borrowing. We give them flexibility on doing acquisitions. But that trade-off is for joint and several personal guarantees for every 20% equity owner or greater, and liens on business, and, in many cases, personal assets, and much stronger guarantors. We were very pleased that in the January month, we brought our fourth ALP securitization to the market, and as I mentioned, it was extremely successful. On slide number 10, you can get a feel for the matrix or what the underlying loans look like in these securitizations.
They're floored at that initial rate, and they could adjust up based upon changes of rates. So we give the borrower flexibility in amortizing the principal over a longer period of time, so we're basically giving them equity. We give them flexibility on distributions. We give them flexibility on borrowing. We give them flexibility on doing acquisitions. But that trade-off is for joint and several personal guarantees for every 20% equity owner or greater, and liens on business, and, in many cases, personal assets, and much stronger guarantors. We were very pleased that in the January month, we brought our fourth ALP securitization to the market, and as I mentioned, it was extremely successful. On slide number 10, you can get a feel for the matrix or what the underlying loans look like in these securitizations.
Earnings, I think it's important to note that similar to 7A loans. There is a structural similarity to the aop loans 10 to 25 year amps, no balloons that typically fixed for 5 years with a spread over the 5-year treasury curve of approximately 950 basis points that origination and then they adjust their forward at that initial rate and they can adjust up based upon changes in rates. So we give the borrower flexibility in advertising the principal over a longer period of time. So we're basically giving them Equity, we give them flexibility on distributions. Give them flexibility on borrowing, we give them flexibility on doing Acquisitions, but that trade-off
Speaker #2: So we're basically giving them equity. We give them flexibility on distributions. We give them flexibility on borrowing. We give them flexibility on doing acquisitions.
Speaker #2: But that trade-off is for joint and several personal guarantees for every 20% equity owner or greater, and liens on the business, and in many cases, personal assets.
Is for joint and several personal guarantees for every 20% Equity owner, or greater and leans on business. And in many cases, personal assets and much stronger, guarantors. Um we are very pleased that in the January month.
We brought our fourth aop securitization to the market, and as I mentioned, it was extremely successful.
Speaker #2: And much stronger guarantors. We're very pleased that in the month of January, we brought our fourth ALP securitization to the market. And as I mentioned, it was extremely successful.
On slide number 10, you can get a feel for the Matrix or what the underlying loans look like in the securitizations.
So,
Speaker #2: On slide number 10, you can get a feel for the matrix or what the underlying loans look like in these securitizations. So, the total amount of non-performing ALP loans is $27.6 million, on a current origination balance of $694 million, but total originations, I believe, is $820 to $830 million.
Barry Sloane: So the total amount of non-performing ALP loans: $27.6 million on a current origination balance of $694 million, but total originations, I believe, is $820 to 830 million. So we've actually had low levels of non-performers and very low levels of charge-offs. I believe total charge-offs are about $6 million to date. Weighted average LTV at origination: 48%. Debt service coverage: 3.3. Very high coupon, very high spread. Now, the spread is important because the spread is protected with the call protection of 5% prepays through 36 months and 3% in month 36 through 48. You could see we're big believers in diversification of geography and industry. On slide 11, the economics of this securitization is discussed further.
So the total amount of non-performing ALP loans: $27.6 million on a current origination balance of $694 million, but total originations, I believe, is $820 to 830 million. So we've actually had low levels of non-performers and very low levels of charge-offs. I believe total charge-offs are about $6 million to date. Weighted average LTV at origination: 48%. Debt service coverage: 3.3. Very high coupon, very high spread. Now, the spread is important because the spread is protected with the call protection of 5% prepays through 36 months and 3% in month 36 through 48. You could see we're big believers in diversification of geography and industry. On slide 11, the economics of this securitization is discussed further.
The total amount of non-performing, alp loans 27.6 million on a current origination balance of 694 million. But total originations, I believe is 820 to 800 and 30 million. So we actually had low levels of non-performers, and very low levels of charge offs. I believe total charge offs are about million dollars to date.
Speaker #2: So, we’ve actually had low levels of non-performers and very low levels of charge-offs. I believe total charge-offs are about $6 million to date. Weighted average LTV at origination, 48%.
Speaker #2: Debt service coverage, 3.3. Very high coupon. Very high spread. Now, the spread is important because the spread is protected with the call protection of 5% prepays through 36 months, and 3% in months 36 through 48.
Important because the spread is protected with the call protection of 5% prepays, through 36 months and 3%. In month, 30 36 through 48. You could see, we're big Believers in diversification of geography and Industry.
On slide number 11.
Speaker #2: You could see we’re big believers in diversification, of geography and industry. On slide number 11, the economics of this securitization is discussed further. On slide number 11, you can see that the gross spread before the 1% servicing fee on the last two deals was about 665 to 670, net about 565 to 570.
Barry Sloane: On slide 11, you could see that the gross spread before the 1% servicing fee on the last two deals was about 665 to 670, net about 565 to 570. Now, these are match-funded in a securitization. I should say match-funded by the durations. Important to note that although the liability arguably is more expensive than in a deposit gathering sense, it is match-funded for term, and there's no cost from a depository perspective. Obviously, take deposits in a bank. You've got a lot of different costs to service the loan, to help the customer, et cetera, et cetera. But here, you've got a 565 basis point spread. Set it and forget it. Clip the coupon. And you could see that on slide 12, these securitizations pay down very quickly. And they pay down quickly because of the excess servicing goes to pay down the senior bonds.
On slide 11, you could see that the gross spread before the 1% servicing fee on the last two deals was about 665 to 670, net about 565 to 570. Now, these are match-funded in a securitization. I should say match-funded by the durations. Important to note that although the liability arguably is more expensive than in a deposit gathering sense, it is match-funded for term, and there's no cost from a depository perspective. Obviously, take deposits in a bank. You've got a lot of different costs to service the loan, to help the customer, et cetera, et cetera. But here, you've got a 565 basis point spread. Set it and forget it. Clip the coupon. And you could see that on slide 12, these securitizations pay down very quickly. And they pay down quickly because of the excess servicing goes to pay down the senior bonds.
Speaker #2: Now, these are match-funded in a securitization. I should say match-funded by the durations. Important to note that although the liability arguably is more expensive than in a deposit-gathering sense, it is match-funded for term, and there's no cost from a depository perspective.
The economics of the securitization is, discussed further on slide number 11. You can see that the gross spread before the 1% servicing fee on the last 2 deals was about 665 to 670 net about 565 to 570. Now these are match funded in a securitization. I should say match funded by the durations important to note that there. Although, the liability arguably is more expensive than in a deposit Gathering sense. It is match funded for term and there's no cost from a depository perspective. I've obviously take deposits in a bank. You've got a lot of different cost to service the loan to help the help the, uh, the customer, etc, etc. But here you've got a 565 basis point spread set it and forget it, clip the coupon and you can see
Speaker #2: Obviously, take deposits in a bank. You've got a lot of different costs to service the loan, to help the customer, etc., etc. But here, you've got a 565 basis point spread.
See that on slide number 12. These securitizations pay down very quickly and they pay down quickly because of the excess servicing goes to pay down the senior bonds.
Speaker #2: Set it and forget it. Clip the coupon. And you could see that on slide number 12, these securitizations pay down very quickly. And they pay down quickly because the excess servicing goes to pay down the senior bonds.
And the over collateralization that you see on slide 12 on 20261, 20251, 20241 happens rather quickly. And as that's happening, what's occurring is the book value or
Speaker #2: And the overcollateralization that you see on slide 12, on 2026-1, 2025-1, 2024-1, happens rather quickly. And as that's happening, what's occurring is the book value, or the loans in the special purpose vehicle versus the amount of debt, keeps growing.
Barry Sloane: The over-collateralization that you see on slide 12, on 2026-1, 2025-1, 2024-1, happens rather quickly. As that's happening, what's occurring is the book value, or the loans in the special purpose vehicle versus the amount of debt, keeps growing. Matter of fact, on average, the book value should equal the fair value of these in approximately 3 to 3.5 years. Extremely important when it comes to being comfortable with our valuations. Slide number 13, our non-bank lending subsidiaries, the payments business, which we've owned since 2002, grown materially, contributed about $16.8 million of adjusted EBITDA in 2025, and it's forecasted to do $17.9 million in 2026. Our insurance agency is growing nicely, particularly as it's been positioned with the bank and uses automatic processes to make insurance available to people that are borrowing money.
The over-collateralization that you see on slide 12, on 2026-1, 2025-1, 2024-1, happens rather quickly. As that's happening, what's occurring is the book value, or the loans in the special purpose vehicle versus the amount of debt, keeps growing. Matter of fact, on average, the book value should equal the fair value of these in approximately 3 to 3.5 years. Extremely important when it comes to being comfortable with our valuations. Slide number 13, our non-bank lending subsidiaries, the payments business, which we've owned since 2002, grown materially, contributed about $16.8 million of adjusted EBITDA in 2025, and it's forecasted to do $17.9 million in 2026. Our insurance agency is growing nicely, particularly as it's been positioned with the bank and uses automatic processes to make insurance available to people that are borrowing money.
The loans in the special purpose vehicle versus the amount of debt keeps growing. Matter of fact on average, the book value should equal the fair value of these at approximately 3 to 3 and a half years extremely important when it comes to being comfortable with our valuations.
Speaker #2: Matter of fact, on average, the book value should equal the fair value of these in approximately three to three-and-a-half years. Extremely important when it comes to being comfortable with our valuations.
Speaker #2: Slide number 13, our non-bank lending subsidiaries, the payments business, which we've owned since 2002, growing materially, contributed about $16.8 million of adjusted EBITDA in 2025 and is forecasted to do $17.9 million in 2026.
Slide number 13. Our non-bank lending, subsidiaries the payments business, which we've owned since 2002 growing and materially contributed about 16.8 million of adjusted, EBA in 2025 and forecasted to do. 17.9 million in 2026, our insurance agency is growing nicely, particularly as it's been positioned with the bank and uses automatic processes to make Insurance available to people that are borrowing money and um
Speaker #2: Our insurance agencies are growing nicely, particularly as it's been positioned with the bank and uses automatic processes to make insurance available to people that are borrowing money.
Speaker #2: And we've contributed $740 million of pre-tax income in 2025. And we think it'll be about one-sixth in 2026. Payroll contributing $450,000 of pre-tax net income.
Barry Sloane: We've contributed $740 million of pre-tax income in 2025, and we think it'll be about $1.6 billion in 2026. Payroll contributing $450,000 of pre-tax net income. We expect to generate $630,000. We have high hopes and expectations for both of these businesses as they are, particularly payroll and payments, connected to the bank account. All of NewtekOne's business lines have and should continue to contribute growth to business deposits. We've talked about the new triple-play offering, which includes merchant, payroll, line of credit, and a bank account. We're continuing to polish up this offering, enhance the client experience, one application, three approvals. Slide number 14, Newtek Small Business Finance is the legacy non-bank SBA lender that's got the uninsured, low participations that are sitting in securitizations and are paying down.
We've contributed $740 million of pre-tax income in 2025, and we think it'll be about $1.6 billion in 2026. Payroll contributing $450,000 of pre-tax net income. We expect to generate $630,000. We have high hopes and expectations for both of these businesses as they are, particularly payroll and payments, connected to the bank account. All of NewtekOne's business lines have and should continue to contribute growth to business deposits. We've talked about the new triple-play offering, which includes merchant, payroll, line of credit, and a bank account. We're continuing to polish up this offering, enhance the client experience, one application, three approvals. Slide number 14, Newtek Small Business Finance is the legacy non-bank SBA lender that's got the uninsured, low participations that are sitting in securitizations and are paying down.
Speaker #2: We expect to generate 630. We have high hopes and expectations for both of these businesses, as they are particularly payroll and payments connected to the bank account.
Speaker #2: All of NewtekOne's business lines have, and should continue to, contribute growth to business deposits. We've talked about the new triple play offering, which includes merchant, payroll, line of credit, and a bank account.
We've contributed 740 million of pre-tax income in 2025 and we take, it'll be about 160 in 20126. Payroll contributing 450,000 of pre-tax net income. We expect to generate 630. We have high hopes and expectations for both of these businesses as they are, particularly, payroll and payments connected to the bank account, all of new tech 1's business lines, have, and should continue to contribute growth to business deposits. We've talked about the new Triple Play offering, which includes Merchant payroll line of credit and a bank account for continuing to polish up, this offering enhance the client experience 1 applications.
Speaker #2: We're continuing to polish up this offering, enhance the client experience. One application for reapprovals—slide number 14. Newtek Small Business Finance is the legacy non-bank SBA lender that's got the uninsured loan participations that are sitting in securitization and are paying down.
Speaker #2: The remaining loans are from the tougher vintages of '21, '22, and '23, and had tremendous stress as rates went up three to five points during that period of time.
Barry Sloane: The remaining loans are from the tougher vintages of 2021, 2022, and 2023, and had tremendous stress as rates went up 3 to 5 points during that period of time. So in addition to having their debt service almost double, we all know that during that prior administration's period, we had a lot of inflation, labor costs going higher, insurance costs going higher, rent going higher. So this is a fairly stressed portfolio. However, we have reported that we see stabilization in credits, both at the whole co and in the bank. Non-accruals at fair value, you could see on slide 14, leveling off. Net increase in non-accruals ticked up a little bit, but still a fairly low number. Notes issued in securitizations, only $127 million left. Those notes are capturing the cash flow until they get paid off.
The remaining loans are from the tougher vintages of 2021, 2022, and 2023, and had tremendous stress as rates went up 3 to 5 points during that period of time. So in addition to having their debt service almost double, we all know that during that prior administration's period, we had a lot of inflation, labor costs going higher, insurance costs going higher, rent going higher. So this is a fairly stressed portfolio. However, we have reported that we see stabilization in credits, both at the whole co and in the bank. Non-accruals at fair value, you could see on slide 14, leveling off. Net increase in non-accruals ticked up a little bit, but still a fairly low number. Notes issued in securitizations, only $127 million left. Those notes are capturing the cash flow until they get paid off.
Slide number 14, new tech, small business finance, is the Legacy non-bank SBA lender. That's got the uninsured low participation that are sitting insecurities and are paying down the remaining loans are from the tougher vintages of 2122 and 23 and had tremendous stress. As rates went up 3 to 5 Points during that period of time. So in addition to having their Debt Service almost double, we all know that during that prior administration's period, we had a lot of inflation.
Speaker #2: So in addition to having their debt service almost double, we all know that during that prior administration's period, we had a lot of inflation.
Speaker #2: Labor costs going higher, insurance costs going higher, rent going higher. So, this is a fairly stressed portfolio. However, we have reported that we see stabilization in credits, both at the holdco and in the bank.
Speaker #2: Non-accruals at fair value—you can see on slide 14—are leveling off. The net increase in non-accruals ticked up a little bit, but it's still a fairly low number.
Labor costs going higher, Insurance costs going higher rent, going higher. So this is a fairly stressed portfolio. However, we have reported that we see stabilization in credits both at the hold Co and in the bank non-accruals at fair value. You can see on slide 14 leveling off net, increasing non-accruals ticked up a little bit but still a fairly low number, um, notes issued in securitization only 127 million left. Those notes are capturing, the cash flow until they get paid off. So we look forward to eliminating those notes as the Loans pay off.
Speaker #2: Notes issued in securitizations—only $127 million left. Those notes are capturing the cash flow until they get paid off. So, we look forward to eliminating those notes as the loans pay off.
Barry Sloane: So we look forward to eliminating those notes as the loans pay off. The loans that were in the NSBF portfolio not too long ago represented 32% of the total balance sheet. It's now down to 13%. So as we said earlier, the loss declined in NSBF to approximately $20 million from $28.7 million the year prior. The accrued portfolio is down $88 million over the course of the last year. And 100% of NSBF loans are now aged 33 months or more, so they're through the tough part of the default curve. Also on slide 15, we talk about some of the credit-worthy aspects at the bank. You could see our delinquency, our current ratio. The delinquency ratio is down precipitously. Our provision for credit losses is covering charge-offs, NPLs to total loans, stabilizing and declining, all good metrics for NewtekOne and its shareholders.
So we look forward to eliminating those notes as the loans pay off. The loans that were in the NSBF portfolio not too long ago represented 32% of the total balance sheet. It's now down to 13%. So as we said earlier, the loss declined in NSBF to approximately $20 million from $28.7 million the year prior. The accrued portfolio is down $88 million over the course of the last year. And 100% of NSBF loans are now aged 33 months or more, so they're through the tough part of the default curve. Also on slide 15, we talk about some of the credit-worthy aspects at the bank. You could see our delinquency, our current ratio. The delinquency ratio is down precipitously. Our provision for credit losses is covering charge-offs, NPLs to total loans, stabilizing and declining, all good metrics for NewtekOne and its shareholders.
20 million from 28.7, the year prior.
Speaker #2: The loans that were in the NSBF portfolio not too long ago represented 32% of the total balance sheet. It's now down to 13%. So, as we said earlier, the loss declined in NSBF to approximately $20 million from $28.7 million the year prior.
Uh we the accrued portfolio is down 88 million over the course of the last year and a 100% of Nas. NBF loans are now aged 3, 3 months or more. So that through the tough part of the default curve. Also on slide number 15,
Speaker #2: The accrued portfolio is down $88 million over the course of the last year. And 100% of NSBF loans are now aged 33 months or more, so they're through the tough part of the default curve.
Speaker #2: Also, on slide number 15, we talk about some of the credit-worthy aspects at the bank. You can see our delinquency, our currency ratio—the delinquency ratio is down precipitously.
Speaker #2: Chart provision for credit losses are covering charge-offs. NPLs to total loans—stabilizing and declining—all good metrics for NewtekOne and its shareholders. With that, I would like to pass the baton to Frank DeMaria, our CFO, who will go over some financial performance metrics for the company.
we talk about some of the credit worthy aspects at the bank, could see our delinquency or currency ratio, uh, the delinquency ratio is down precipitously. Um, chart provision for credit losses are covering charge offs. Um, npls the total loans, uh, stabilizing and declining. All good metrics for new Tech 1 and its shareholders. With that. I would like to uh pass the Baton to Frank de Maria. Our CFO who will go over some financial performance metrics for the company.
Thanks Barry. The next 7 slides will dive into the details of the highlights that Barry touched on.
Barry Sloane: With that, I would like to pass the baton to Frank DeMaria, our CFO, who will go over some financial performance metrics for the company. Thanks, Barry. The next seven slides will dive into the details of the highlights that Barry touched on. Turning to slide 17, we have our financial highlights for 2025. We are particularly proud that we're able to concurrently generate balance sheet growth, earnings growth, efficiency, and strong profitability while maintaining healthy capital ratios, all while our non-bank lender, NSBF, continues to run off. Slide 18 runs through Newtek Bank's highlights, which paint a similar picture of balance sheet growth, earnings growth, efficiency, and profitability. Important to note the overall downward trend in our cost of deposits as we continue to see a shift in the deposit mix with the growth in business deposits throughout the year.
With that, I would like to pass the baton to Frank DeMaria, our CFO, who will go over some financial performance metrics for the company.
Frank DeMaria: Thanks, Barry. The next seven slides will dive into the details of the highlights that Barry touched on. Turning to slide 17, we have our financial highlights for 2025. We are particularly proud that we're able to concurrently generate balance sheet growth, earnings growth, efficiency, and strong profitability while maintaining healthy capital ratios, all while our non-bank lender, NSBF, continues to run off. Slide 18 runs through Newtek Bank's highlights, which paint a similar picture of balance sheet growth, earnings growth, efficiency, and profitability. Important to note the overall downward trend in our cost of deposits as we continue to see a shift in the deposit mix with the growth in business deposits throughout the year.
Speaker #2: Thanks, Barry. The next seven slides will dive into the details of the highlights that Barry touched on. Turning to slide 17, we have our financial highlights for 2025.
Turning to 517. We have our financial highlights for 2025. We are particularly proud that we're able to. Concurrently generate balance sheet growth, earnings growth, efficiency and strong profitability while maintaining healthy Capital. Ratios all while our non-bank lender and SPF continues to run off,
Speaker #2: We are particularly proud that we're able to concurrently generate balance sheet growth, earnings growth, efficiency, and strong profitability while maintaining healthy capital ratios, all while our non-bank lender NSBF continues to run off.
Speaker #2: Slide 18 runs through Newtek Bank's highlights, which paint a similar picture of balance sheet growth, earnings growth, efficiency, and profitability. Important to note, the overall downward trend in our cost of deposits as we continue to see a shift in the deposit mix with the growth in business deposits throughout the year.
Slide 18 runs through new tech Banks highlights which paint a similar picture of balance sheet growth earnings, growth, efficiency and profitability, important to note, the overall downward Trend in our cost of deposits. As we continue to see a shift in the in the deposit. Mix with the growth in business deposits throughout the year.
And while our ACL to loans, help for investment coverage ratio, remains healthy. We are starting to see a leveling as we've built the ACL over the last 3 years, and start to see the bank's portfolio begin to see season.
On the next slide.
Speaker #2: And while our ACL-to-loans help for investment coverage ratio remains healthy, we are starting to see a leveling, as we've built the ACL over the last three years and start to see the bank's portfolio begin to season.
Barry Sloane: And while our ACL to loans held for investment coverage ratio remains healthy, we are starting to see a leveling as we've built the ACL over the last three years and start to see the bank's portfolio begin to season. On the next slide, Newtek's deposit story continues to be a good one. We're growing both business and consumer deposits and offering what we believe to be tremendous value to both consumer and business depositors. As I briefly mentioned, the cost of deposits at Newtek Bank declined roughly 16 basis points sequentially, coinciding with lower market rates. As Barry mentioned earlier, and as noted on this slide, we're finding success in lending clients opening bank accounts with roughly half of the borrowers opening at least one bank account since we acquired the bank in early 2023. We expect that penetration rate to grow over time.
And while our ACL to loans held for investment coverage ratio remains healthy, we are starting to see a leveling as we've built the ACL over the last three years and start to see the bank's portfolio begin to season. On the next slide, Newtek's deposit story continues to be a good one. We're growing both business and consumer deposits and offering what we believe to be tremendous value to both consumer and business depositors. As I briefly mentioned, the cost of deposits at Newtek Bank declined roughly 16 basis points sequentially, coinciding with lower market rates. As Barry mentioned earlier, and as noted on this slide, we're finding success in lending clients opening bank accounts with roughly half of the borrowers opening at least one bank account since we acquired the bank in early 2023. We expect that penetration rate to grow over time.
New tech depository, continues to be a good 1. We're growing both business and consumer deposits and offering what we believe to be tremendous, value to both consumer and business depositors.
Speaker #2: On the next slide, Newtek’s deposit story continues to be a good one. We’re growing both business and consumer deposits, and offering what we believe to be tremendous value to both consumer and business depositors.
As I briefly mentioned, the cost of the deposits that new tech, Bank declined, roughly 16 basis points sequentially, coinciding with lower Market rates,
Speaker #2: As I briefly mentioned, the cost of deposits at Newtek Bank declined roughly 16 basis points sequentially, coinciding with lower market rates. As Barry mentioned earlier, and as noted on this slide, we're finding success in lending clients opening bank accounts, with roughly half of the borrowers opening at least one bank account since we acquired the bank in early 2023.
As Barry mentioned earlier and is noted on this slide, we're finding success in lending clients opening bank accounts with roughly half of the borrowers opening, at least 1 bank account since we acquired the bank in early 2023.
We expect that penetration rate to grow over time. We also believe we're creating sticky deposit relationships, given our competitive market rates on deposits. Our integrated business portal and our insured deposit rate which currently sits at 74%.
Speaker #2: We expect that penetration rate to grow over time. We also believe we're creating sticky deposit relationships, given our competitive market rates on deposits, our integrated business portal, and our insured deposit rate, which currently sits at 74%.
Shifting to new tech Banks held for Investment. Portfolio on slide 20.
Barry Sloane: We also believe we're creating sticky deposit relationships given our competitive market rates on deposits, our integrated business portal, and our insured deposit rate, which currently sits at 74%. Shifting to Newtek Bank's held-for-investment portfolio on slide 20. The held-for-investment portfolio increased roughly 44% in 2025, with the portfolio mix largely unchanged throughout the year. Unguaranteed portions of SBA 7(a) loans comprise roughly 60% of the held-for-investment book, while the allowance for credit losses related to the unguaranteed 7(a) portfolio makes up the bulk of the bank's ACL, which resulted in the previously mentioned coverage ratio of just over 5% at the end of the year. On the next slide, we show the operating leverage continues to be a meaningful contributor to our financial performance.
We also believe we're creating sticky deposit relationships given our competitive market rates on deposits, our integrated business portal, and our insured deposit rate, which currently sits at 74%. Shifting to Newtek Bank's held-for-investment portfolio on slide 20. The held-for-investment portfolio increased roughly 44% in 2025, with the portfolio mix largely unchanged throughout the year. Unguaranteed portions of SBA 7(a) loans comprise roughly 60% of the held-for-investment book, while the allowance for credit losses related to the unguaranteed 7(a) portfolio makes up the bulk of the bank's ACL, which resulted in the previously mentioned coverage ratio of just over 5% at the end of the year. On the next slide, we show the operating leverage continues to be a meaningful contributor to our financial performance.
The health for Investment Portfolio, increased roughly 44% in 2025 with the portfolio. Mix largely unchanged throughout the year.
Speaker #2: Shifting to Newtek Bank's held-for-investment portfolio on slide 20. The held-for-investment portfolio increased roughly 44% in 2025, with the portfolio mix largely unchanged throughout the year.
Speaker #2: Unguaranteed portions of SBA 7(a) loans comprise roughly 60% of the held-for-investment book, while the allowance for credit losses related to the unguaranteed 7(a) portfolio makes up the bulk of the bank's ACL.
On guaranteed portions of SBA 7A loans, comprise roughly 60% of the health for investment books. While the allowance for credit losses related to the unguaranteed 7A portfolio, makes up the bulk of the bank's ACL which resulted in the previously mentioned coverage ratio of just over 5% at the end of the year.
On the next slide. We show the operating leverage continues to be a meaningful contributor to our financial performance.
Speaker #2: Which resulted in the previously mentioned coverage ratio of just over 5% at the end of the year. On the next slide, we show the operating leverage continues to be a meaningful contributor to our financial performance.
We have consistently stated that our technological and operational infrastructure was designed to support a much, larger balance, sheet and organization.
Speaker #2: We have consistently stated that our technological and operational infrastructure was designed to support a much larger balance sheet and organization, and we continue to deliver on those statements.
Barry Sloane: We have consistently stated that our technological and operational infrastructure was designed to support a much larger balance sheet and organization, and we continue to deliver on those statements. Annual operating expenses were up just 2% in 2025, against 33% growth in assets, which supported that year-over-year decline in efficiency ratio from 63% to 58%. We included the next slide in our Invest Today presentation a few weeks ago. We have maintained fairly stout regulatory capital ratios, and we've grown the balance sheet strategically layering in capital along the way. I'll conclude my portion of today's discussion with Newtek's financial projections for 2026 on slide 23. Relative to diluted EPS of $2.18 for 2025, we have established an EPS guidance range of $2.15 to $2.55 for 2026, with a midpoint of $2.35.
We have consistently stated that our technological and operational infrastructure was designed to support a much larger balance sheet and organization, and we continue to deliver on those statements. Annual operating expenses were up just 2% in 2025, against 33% growth in assets, which supported that year-over-year decline in efficiency ratio from 63% to 58%. We included the next slide in our Invest Today presentation a few weeks ago. We have maintained fairly stout regulatory capital ratios, and we've grown the balance sheet strategically layering in capital along the way. I'll conclude my portion of today's discussion with Newtek's financial projections for 2026 on slide 23. Relative to diluted EPS of $2.18 for 2025, we have established an EPS guidance range of $2.15 to $2.55 for 2026, with a midpoint of $2.35.
And we continue to deliver on those statements annual operating expenses were up just 2% in 2025, against 33%, growth in assets, which supported that year-over-year decline in efficiency ratio from 63% to 58%.
Speaker #2: Annual operating expenses were up just 2% in 2025 against 33% growth in assets, which supported that year-over-year decline in efficiency ratio from 63% to 58%.
We included the next slide in our invest today presentation a few weeks ago. We have maintained fairly Stout regulatory Capital ratios and we've grown the balance sheet strategically layering in capital along the way.
Speaker #2: We included the next slide in our investor day presentation a few weeks ago. We have maintained fairly stout regulatory capital ratios, and we've grown the balance sheet strategically, layering in capital along the way.
I'll conclude my portion of today's discussion with new Tech financial projections for 2026 on slide 23.
Speaker #2: I'll conclude my portion of today's discussion with Newtek's financial projections for 2026 on slide 23. Relative to diluted EPS of $2.18 for 2025, we have established an EPS guidance range of $2.15 to $2.55 for 2026, with a midpoint of $2.35.
Speaker #2: Estimates incorporate $1 billion of SBA 7(a) originations, $500 million of ALP or long amortizing C&I loan originations, $175 million of SBA 504 originations, and $150 million of net growth in the combined C&I and CRE portfolios.
Barry Sloane: Estimates incorporate $1 billion of SBA 7(a) originations, $500 million of ALP or long-amortizing C&I loan originations, $175 million of SBA 504 originations, and $150 million of net growth in the combined C&I and CRE portfolios. Projected originations and net growth reflect step-ups from 2025 levels. We've included a quarterly EPS view for 2026, which reflects the recently closed NALP 2026-1 transaction in the first quarter and a projection for a second securitization this year in the fourth quarter. And with that, I'll turn it back to Barry for the last few slides ahead of Q&A. Thank you, Frank. Slide number 24, which we talked about at the beginning of the presentation, because this kind of represents a lot of what NewtekOne and Newtek Bank, National Association are trying to do. We don't look like a community bank. We don't act like a community bank.
Estimates incorporate $1 billion of SBA 7(a) originations, $500 million of ALP or long-amortizing C&I loan originations, $175 million of SBA 504 originations, and $150 million of net growth in the combined C&I and CRE portfolios. Projected originations and net growth reflect step-ups from 2025 levels. We've included a quarterly EPS view for 2026, which reflects the recently closed NALP 2026-1 transaction in the first quarter and a projection for a second securitization this year in the fourth quarter. And with that, I'll turn it back to Barry for the last few slides ahead of Q&A.
Relative to diluted EPS of $218 cents for 2025. We have established an EPS guidance range of $2.15 to $255 for 2026 with a midpoint of $2.35 estimates incorporate, 1 billion dollars of SBA 7A. Originations 500 million dollars of alp or long advertising. Cni loan, originations 175 million of SBA 504 originations and 150 million dollars of net growth in the combined cni and CRA portfolios.
25 levels.
Speaker #2: Projected originations and net growth reflect step-ups from 2025 levels. We've included a quarterly EPS view for 2026, which reflects the recently closed NALP 2026-1 transaction in the first quarter and a projection for a second securitization this year in the fourth quarter.
We've included a quarterly EPS view for 2026 which reflects the recently closed nalp 20261 transaction in the first quarter and a projection for a second securiser in the fourth quarter. And with that, I'll turn it back to Barry for the last few slides ahead of Q&A.
because this kind of represents, um,
Speaker #2: And with that, I'll turn it back to Barry for the last few slides ahead of.
Speaker #2: Q&A. Thank you,
A lot of what new Tech 1 and new tech Bank National Association are trying to do.
Barry Sloane: Thank you, Frank. Slide number 24, which we talked about at the beginning of the presentation, because this kind of represents a lot of what NewtekOne and Newtek Bank, National Association are trying to do. We don't look like a community bank. We don't act like a community bank.
Speaker #3: Frank. Slide number 24, which we talked about at the beginning of the presentation, because this kind of represents a lot of what NewtekOne and Newtek Bank National Association are trying to do.
We don't look like a Community Bank. We don't act like a Community Bank. We basically have built
a financial institution to service our customers.
Speaker #3: We don't look like a community bank. We don't act like a community bank. We basically have built a financial institution to service our customers.
Barry Sloane: We basically have built a financial institution to service our customers. Utilizing technology, we're able to provide a frictionless environment to exchange information, have customer service and business service specialists be on a camera and be available on demand. We give our business clients the ability to send and receive money at the lowest cost, with the greatest amount of data and the greatest amount of analytics to run their business. We actually give them loans that are valuable. Not, "I'll fund you in 24 to 48 hours and forget what the rate is, but you got to pay me back the principal in 6 to 24 months." From a branding perspective, we disagree that being able to charge those high rates for quick money really provides great brand value. We do provide great brand value. Yes, we have larger provisions.
We basically have built a financial institution to service our customers. Utilizing technology, we're able to provide a frictionless environment to exchange information, have customer service and business service specialists be on a camera and be available on demand. We give our business clients the ability to send and receive money at the lowest cost, with the greatest amount of data and the greatest amount of analytics to run their business. We actually give them loans that are valuable. Not, "I'll fund you in 24 to 48 hours and forget what the rate is, but you got to pay me back the principal in 6 to 24 months." From a branding perspective, we disagree that being able to charge those high rates for quick money really provides great brand value. We do provide great brand value. Yes, we have larger provisions.
Speaker #3: Utilizing technology, we're able to provide a frictionless environment to exchange information, have customer service and business service specialists be on camera, and be available on demand.
Speaker #3: We give our business clients the ability to send and receive money at the lowest cost, with the greatest amount of data and the greatest amount of analytics to run their business.
Utilizing technology. We're able to provide a frictional environment to exchange information. Have customer service and business service specialists, the Ona camera and be available on demand, we give our business clients, the ability to send and receive money at the lowest cost with the greatest amount of data. And the greatest amount of analytics to run their business, we actually give them loans that are valuable not, I'll fund you in 24 to 48 hours and forget what the rate is, but you got to pay me back. The principal in 6, to 24 months, from a branding perspective, we disagree that
Speaker #3: We actually give them loans that are valuable, not, 'I'll fund you in 24 to 48 hours,' and forget what the rate is, but you’ve got to pay me back the principal in 6 to 24 months.
Speaker #3: From a branding perspective, we disagree that being able to charge those high rates for quick money really provides great brand value. We do provide great brand value.
Speaker #3: Yes, we have larger provisions. Yes, we have greater allowance for credit losses, which cover the amount of losses that we'll achieve. We have accurately forecasted what our charge-offs are, what our losses are, and we have that reserved.
Being able to charge those High rates for quick money, really provide great brand value, we do provide great brand value. Yes, we have larger Provisions. Yes, we have greater allowance for credit losses, which are covered the amount of losses that will achieve. We have accurately forecasted what our charge offs are what our losses are. And we have that reserve and on top of that.
Barry Sloane: Yes, we have greater allowance for credit losses, which cover the amount of losses that we'll achieve. We have accurately forecasted what our charge-offs are, what our losses are, and we have that reserved. On top of that, we have ROAAs at the whole co of 2.7% and ROTCEs at the whole co approximately 20%. We're able to earn greater returns with greater margins on a net basis. We're an organization that manages credit risk, not avoids it. When you look at the other organizations in the market, we're also disruptors. Some of them for consumer, some of them for online deposits. Axos, almost 5 years on slide number 4 before the stock started to move higher. Now it trades 11x consensus and 207% of book value.
Yes, we have greater allowance for credit losses, which cover the amount of losses that we'll achieve. We have accurately forecasted what our charge-offs are, what our losses are, and we have that reserved. On top of that, we have ROAAs at the whole co of 2.7% and ROTCEs at the whole co approximately 20%. We're able to earn greater returns with greater margins on a net basis. We're an organization that manages credit risk, not avoids it. When you look at the other organizations in the market, we're also disruptors. Some of them for consumer, some of them for online deposits. Axos, almost 5 years on slide number 4 before the stock started to move higher. Now it trades 11x consensus and 207% of book value.
Speaker #3: And on top of that, we have ROAAs at the whole toe of 2.7% and ROTCEs at the whole toe, proximately 20%. So we're able to earn greater returns with greater margins on a net basis.
Speaker #3: We're an organization that manages credit risk, not avoids it. And when you look at the other organizations in the market that were also disruptors—some of them for consumer, some of them for online deposits—Axos, almost five years on slide number four before the stock started to move higher.
We have raas at the whole Co of 2.7% and roce at the whole Co approximately 20%. So we're able to earn greater returns with greater margins on a net basis. We're an organization that manages credit risk, not avoids it. And when you look at the other, uh, organizations in the market, then we're also disruptors, some of them for Consumer, some of them for online, deposits, axos almost 5 years on. Slide number 4 before the Stark started to move higher. Now, I trade, 11 times consensus, and 207% of Book value.
Speaker #3: Now trades at 11 times consensus, and 207% of book value. Live Oak Bank, five years before the stock started to move, trades at 13 times 2026 consensus.
Barry Sloane: Live Oak Bank, 5 years before the stock started to move, trades at 13x 2026 consensus, 164% of book. TFEN, 6 years before the stock started to move. I hope this doesn't take 6 years. It's trading at 40% 2026 EPS. SoFi, 2.5- to 3-year period, sideways to low before the stock makes a move. It just takes a while before investors get comfortable, get a feel for how the business works, test the model. You see it in Northeast Bank. You see it in LendingClub. These are all good markers for us.
Live Oak Bank, 5 years before the stock started to move, trades at 13x 2026 consensus, 164% of book. TFEN, 6 years before the stock started to move. I hope this doesn't take 6 years. It's trading at 40% 2026 EPS. SoFi, 2.5- to 3-year period, sideways to low before the stock makes a move. It just takes a while before investors get comfortable, get a feel for how the business works, test the model. You see it in Northeast Bank. You see it in LendingClub. These are all good markers for us.
Speaker #3: 164% of book. TFEN, six years for the stock started to move. I hope this doesn't take six years. It's trading at 40% 2026 EPS.
Bible Bank, 5 years for the stock started to move trades, are 13 times 2026 consensus 164% of book ten, 6 years for the stock started to move. I hope this doesn't take 6 years. Um, it's trading at 40% 2026, EPS Sophie, 2 and a half to 3 year period sideways to low. Before the stock making a move. It just takes a while. Before investors get comfortable, get a feel for how the business works.
Speaker #3: SoFi, 2.5 to 3-year period, sideways to low before the stock making a move. It just takes a while before investors get comfortable. Get a feel for how the business works.
Speaker #3: You see it in Northeast Bank. You see it in LendingClub. These are all good markers for us. They're all technology-enabled banks that have been able to service their client base in similar ways to what we are, but we obviously have this positioning and expertise with SMBs, SMEs, and what we refer to as independent business owners—a very viable and valuable demographic in the marketplace that we've developed this level of expertise with over the course of two decades.
Barry Sloane: They're all technology-enabled banks that have been able to service their client base in similar ways to what we are, but we obviously got this positioning and expertise with SMBs, SMEs, and what we refer to as independent business owners, a very viable and valuable demographic in the marketplace that we've developed this level of expertise over the course of two decades. And with that, we appreciate the opportunity to present our Q4 and annual results. And operator, we'd like to go to the Q&A. Question. You will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Tim Switzer of KBW. Your question, please, Tim. Hey, good afternoon, guys. Thanks for taking my question. Thank you, Tim. Hey, Tim.
They're all technology-enabled banks that have been able to service their client base in similar ways to what we are, but we obviously got this positioning and expertise with SMBs, SMEs, and what we refer to as independent business owners, a very viable and valuable demographic in the marketplace that we've developed this level of expertise over the course of two decades. And with that, we appreciate the opportunity to present our Q4 and annual results. And operator, we'd like to go to the Q&A.
Test the model, you see it in Northeast Bank, you see it in Lending Club, these are all good markers for us. They're all technology enabled banks that have been able to service their client base in similar ways to what we are, but we obviously got this positioning and expertise with smbs and we refer to as independent business owners, a very viable and valuable demographic in the marketplace that we've developed this level of expertise over the course of 2 decades. And with that, we appreciate the opportunity to present our Q4 and annual results and operator would like to go to the Q&A.
Speaker #3: And with that, we appreciate the opportunity to present our Q4 and annual results. And operator, we'd like to go to the...
Question. You will need to press star 1, 1 on your telephone, to remove yourself from the queue. You may press star 1 1 again.
Please stand by while we compile the Q&A roster.
Speaker #3: Q&A.
Operator: Question. You will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Tim Switzer of KBW. Your question, please, Tim.
Our first question.
Speaker #4: Quick question. You
Speaker #4: You will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again. Please stand by while we compile the Q&A roster.
Comes from the line of Tim Switzer of KBW. Your question, please. Tim
Hey, good afternoon, guys. Thanks uh for taking my question.
Thank you, too.
Speaker #4: Our first question comes from the line of Tim Switzer of KBW. Your question, please, Tim.
Tim Switzer: Hey, good afternoon, guys. Thanks for taking my question.
Speaker #5: Hey, good afternoon, guys. Thanks for taking my question.
Barry Sloane: Thank you, Tim.
Frank DeMaria: Hey, Tim.
Yeah, Barry you told me for a minute at the beginning I thought uh thought we were getting into this question answer session in a few uh, in the first 5 minutes, I was ready to go. That would have made everybody happy but it was a half an hour we're getting better. Tim, we're practicing good work. Um,
Speaker #6: Hey, Tim. Thank you, Tim.
Speaker #3: Yeah, Barry, you fooled me for a minute at the beginning. I thought we were getting this question answered within the first five minutes.
Barry Sloane: Yeah, Barry, you fooled me for a minute at the beginning. I thought we were getting this question answered in a few, in the first 5 minutes. I was ready to go. That would have made everybody happy, but it was a half an hour. We're getting better, Tim. We're practicing. Good work. So my first question is something in the press release. You mentioned that you increased deposit account openings by about 50% this quarter. And I know it's something you talked a little bit about on the investor day, but it just seems like a pretty sizable increase in one quarter. Could you maybe talk about what was driving that and what your expectations are going forward? It seems like those are some pretty good trends. Thank you, Tim.
Tim Switzer: Yeah, Barry, you fooled me for a minute at the beginning. I thought we were getting this question answered in a few, in the first 5 minutes. I was ready to go.
So so my first question, is something in the press release. You, you mentioned that?
um,
Speaker #3: I was ready to
Speaker #3: go. That would have made everybody
Barry Sloane: That would have made everybody happy, but it was a half an hour. We're getting better, Tim. We're practicing.
Speaker #5: Happy, but it was a half an hour. We're getting better, Tim. We're practicing.
Tim Switzer: Good work. So my first question is something in the press release. You mentioned that you increased deposit account openings by about 50% this quarter. And I know it's something you talked a little bit about on the investor day, but it just seems like a pretty sizable increase in one quarter. Could you maybe talk about what was driving that and what your expectations are going forward? It seems like those are some pretty good trends.
Speaker #3: Good work. So, my first question is something in the press release. You mentioned that you increased deposit account openings by about 50% this quarter.
Sent this quarter. And I know some, you talked a little bit about on the investor day. Um, but it just seems like a pretty sizable increase um in 1 quarter to. Could you maybe talk about what was driving that and you know what your expectations are going forward because it seems like there's some pretty good trends
Speaker #3: And I know there’s some you talked a little bit about on the Investor Day. But it just seems like a pretty sizable increase in one quarter. Could you maybe talk about what was driving that, and what your expectations are going forward?
Speaker #3: Because it seems like those are some pretty good trends. Thank you, Tim. Look, first of all, we believe that the ability to access us digitally from your home in a frictionless manner for business deposits as well as consumer is important.
Barry Sloane: Thank you, Tim.
Barry Sloane: Look, first of all, we believe that the ability to access us digitally from your home in a frictionless manner for business deposits, as well as consumer, is important. I think there's plenty of people that do it well for consumer, a little harder to do for business, harder to acquire, harder to manage. We've been blessed. We've gotten through three years of audits, and it's worked out well. I think that we've got very good margins in our business. I believe the NIM at the bank has got a five-handle on it. I got to go dig it out here. But I think it's, Frank, what is it, like 5.3, 5.4? Yeah, 5.25. Right. So we're able to offer a generous rate and no fees, no asterisk, no way. So the rates are generous.
Look, first of all, we believe that the ability to access us digitally from your home in a frictionless manner for business deposits, as well as consumer, is important. I think there's plenty of people that do it well for consumer, a little harder to do for business, harder to acquire, harder to manage. We've been blessed. We've gotten through three years of audits, and it's worked out well. I think that we've got very good margins in our business. I believe the NIM at the bank has got a five-handle on it. I got to go dig it out here. But I think it's, Frank, what is it, like 5.3, 5.4?
Thank you. Tim look, first of all. Um, you know, we believe that, um, the ability to access us digitally from your home in a frictionless manner for business deposits, as well as consumer is important and I think
Speaker #3: And I think there's plenty of people that do it well for consumer, a little harder to do for business, harder to acquire, harder to manage.
Speaker #3: And we've been blessed. We've gotten through three years of audits and it's worked out well. I think that we've got very good margins in our business.
There's plenty of people that do it well for Consumer. Um, a little harder to do, for business harder, to acquire harder to manage. And we've been blessed, we've gotten through, uh, 3 years of audits and it's worked out. Well, I think that, um, we've got very good margins in our business. I believe the Nim at the bank, has got a 5 handle on it. I got to go dig it out here, but I think it's Frank. What is it like, 5.3 5.4
Yeah, 5 and a quarter.
Speaker #3: I believe the NIM at the bank has got a five handle on it. I got to go dig it out here. But I think it's Frank, what is it, like 5.3, 5.4?
Frank DeMaria: Yeah, 5.25. Right.
Speaker #6: Yeah, five and a
Right? So we're able to offer a generous rate and no fees no asterisk, no way. So the rates are generous now some people say oh my God, those are really risky deposits. I think 78% of them aren't short.
Speaker #6: quarter. Right.
and the important part is,
Barry Sloane: So we're able to offer a generous rate and no fees, no asterisk, no way. So the rates are generous.
Speaker #3: So we're able to offer a generous rate. And no fees no asterisk no way. So the rates are generous. Now, some people say, "Oh my God, those are really risky deposits." I think 78% of them aren't short.
you're in a market rate because people aren't going anywhere.
So, our portfolio.
Barry Sloane: Now, some people say, "Oh my God, those are really risky deposits." I think 78% of them aren't short. And the important part is they're at a market rate. Those people aren't going anywhere. So our portfolio can afford to pay that deposit base. I think that's a more stable deposit than one that is at zero. So we're paying a healthy rate. We don't see the attrition. Clients are sticking with us. They're not leaving. And we're getting more and more deposits. It's an interesting interest rate environment, whether you think the Fed's going to drop rates. The recent Fed meeting says they're going to stick. So I think that's the fact that it's frictionless, the fact that our alliance partners are appreciating what we're doing. We're bringing on more alliance partners, and we're going to continue to be able to grow deposits to fuel good loan growth.
Now, some people say, "Oh my God, those are really risky deposits." I think 78% of them aren't short. And the important part is they're at a market rate. Those people aren't going anywhere. So our portfolio can afford to pay that deposit base. I think that's a more stable deposit than one that is at zero. So we're paying a healthy rate. We don't see the attrition. Clients are sticking with us. They're not leaving. And we're getting more and more deposits. It's an interesting interest rate environment, whether you think the Fed's going to drop rates. The recent Fed meeting says they're going to stick. So I think that's the fact that it's frictionless, the fact that our alliance partners are appreciating what we're doing. We're bringing on more alliance partners, and we're going to continue to be able to grow deposits to fuel good loan growth.
Can afford to pay that deposit base.
I think that's the most able to
Speaker #3: And the important part is they're in a market rate. Those people aren't going anywhere. So our portfolio can afford to pay that deposit base.
Then 1, that is at zero. So we're paying a healthy rate.
Speaker #3: I think that's more stable than one that is at zero. So we're paying a healthy rate. We don't see the attrition. Clients are sticking with us.
Speaker #3: They're not leaving, and we're getting more and more deposits. It's an interesting interest rate environment. Whether you think the Fed's going to drop rates—the recent Fed meeting says they're going to stick.
We don't we don't see the attrition clients are sticking with us, they're not leaving and um we're getting more and more deposits. It's an interesting interest rate environment, whether you think the feds going to drop rates, uh, the recent fed meeting says they're going to stick. So I think that's the fact that it's frictionless, the fact that our alliance partners are appreciating. What we're doing, we're bringing on more Alliance partners and we're going to continue to be able to grow deposits to fuel. Good lung growth.
Speaker #3: So I think that's the fact that it's frictionless, the fact that our alliance partners are appreciating what we're doing, we're bringing on more alliance partners, and we're going to continue to be able to grow deposits to fuel good loan
Awesome. Okay, yeah, that's good to hear. And
Speaker #3: growth. Awesome.
Barry Sloane: Awesome. Okay. Yeah, that's good to hear. And if I'm looking at the non-interest income detail here, the gain on sale was maybe just a little bit light relative to what we had expected. It was flat quarter-over-quarter, but could you maybe talk about some of the trends there and what we should expect next year, given your guidance for about $1 billion of SBA originations? Well, we do expect the 7(a) business to pick up again. It was a bit of a shift. There's been a lot of changes in the SBA world. Some of these I didn't expect to be as dramatic, such as the citizenship issue was dramatic. The inability to refinance MCA product is dramatic. Recently, I think this is going to be somewhat helpful. The SBA is going away from the SBSS score.
Tim Switzer: Awesome. Okay. Yeah, that's good to hear. And if I'm looking at the non-interest income detail here, the gain on sale was maybe just a little bit light relative to what we had expected. It was flat quarter-over-quarter, but could you maybe talk about some of the trends there and what we should expect next year, given your guidance for about $1 billion of SBA originations?
Speaker #5: Okay, yeah, that's good to hear. And if I'm looking at the amount of income detail here, gain on sale was maybe just a little bit light relative to what we had expected.
Um, if I'm looking at the, uh, manage of income detail here, the gain on sale is maybe just a little bit light relative to what we had expected. Um, it, it was flat quarter of a quarter but you could you maybe talk about some of the trends there and what we should expect. Um, next year given your guidance for about, you know, a billion dollars of SBA originations
Speaker #5: It was flat quarter over quarter, but could you maybe talk about some of the trends there and what we should expect next year given your guidance for about a billion dollars of SBA
Speaker #5: originations? Well, we
Barry Sloane: Well, we do expect the 7(a) business to pick up again. It was a bit of a shift. There's been a lot of changes in the SBA world. Some of these I didn't expect to be as dramatic, such as the citizenship issue was dramatic. The inability to refinance MCA product is dramatic. Recently, I think this is going to be somewhat helpful. The SBA is going away from the SBSS score.
Speaker #3: Do expect seven to eight business to pick up again. It was a bit of a shift. There's been a lot of changes in the SBA world.
Speaker #3: Some of these I didn't expect to be as dramatic such as the citizenship issue. Was dramatic. The inability to refinance MCA product is dramatic.
Speaker #3: Recently, I think this is going to be somewhat helpful. The SBA is going away from the SBSS score. We're waiting for some further guidance on this, but they're asking us to use our own scoring methodology.
Well, we we do expect 7A business to pick up. Again, it was a bit of a shift, there's been a lot of changes in the SBA World. Um, some of these, I didn't expect to be as dramatic such as, um, the, the, uh, citizenship issue. Um, was dramatic. Um, the inability to refinance MCA product is dramatic. Um, recently. Um, I think this is going to be somewhat helpful. The SBA is going away from the sbss score. Um, they, you know, we're waiting for some further guidance on this, but they're asking us to use our own scoring of theology. That SPS score will stick until the 31st. So I think that, um,
Barry Sloane: We're waiting for some further guidance on this, but they're asking us to use our own scoring methodology. That SBSS score will stick until the 31st. So I think that our volumes will do better. I think you've seen entities like BayFirst get out of the business, a few others that I won't mention that seem to be having financial struggles that were of the fintech variety. One of the other changes, which I think is important, is the SBA is clearly requiring forecasting of debt service coverage over time. And most of the competitors in the fintech space, these are technology companies that are not credit. They lay them off to other participants. They've got to change their whole front in intake. We don't. Intake, we don't. So I think we're better positioned competitively. We've always been a five Cs of credit lender. We take liens.
We're waiting for some further guidance on this, but they're asking us to use our own scoring methodology. That SBSS score will stick until the 31st. So I think that our volumes will do better. I think you've seen entities like BayFirst get out of the business, a few others that I won't mention that seem to be having financial struggles that were of the fintech variety. One of the other changes, which I think is important, is the SBA is clearly requiring forecasting of debt service coverage over time. And most of the competitors in the fintech space, these are technology companies that are not credit. They lay them off to other participants. They've got to change their whole front in intake. We don't. Intake, we don't. So I think we're better positioned competitively. We've always been a five Cs of credit lender. We take liens.
Speaker #3: That SBS score will stick until the 31st. So I think that our volumes will do better. I think you've seen entities like Bay First get out of the business, and a few others that I won't mention, that seem to be having financial struggles that were of the fintech variety.
Speaker #3: One of the other changes, which I think is important, is the SBA is clearly requiring forecasting of debt service coverage over time. And most of the competitors in the fintech space, these are technology companies that are not credit.
Our volumes will do better. I think you've seen entities like Bay first, get out of the business. A few others that I won't mention that seem to be having Financial struggles. That were of the fintech variety 1 of the other changes, which I think is important is the SBA is clearly requiring, um, forecasting of debt service coverage over time. And most of the competitors in the fintech space. These are technology companies that are not credited. They lay them off to other participants, they've got to change their whole front end in Tech. We don't intake, we don't. So I think we're better positioned competitively. We've always been a 5 C's of credit lender. We take lean
Speaker #3: They lay them off to other participants. They've got to change their whole front and intake. We don't. Intake, we don't. So I think we're better positioned competitively. We've always been a five Cs of credit lender.
Uh, we spread financials and our technology and our AI covers this. I think some of our competitors have got to put that in place scramble and do it rather quickly. And it's also untested,
Speaker #3: We take liens. We spread financials. Our technology and our AI covers this. I think some of our competitors have got to put that in place, scramble, and do it rather quickly.
Barry Sloane: We spread financials. Our technology and our AI covers this. I think some of our competitors have got to put that in place, scramble, and do it rather quickly, and it's also untested. Okay. Got it. That was really helpful. I have a few cleanup questions, if you can entertain me real quick. The first one is, what were the net charge-offs for the bank subsidiary? I might have missed it, but I couldn't find it in the earnings materials. Right. Frank, total charge-offs on all loans, held for sale, and investment at 12/31 was about 2.2%? That's right. And at the bank, Tim, to answer your question, was $8.2 million for the quarter and $23 million for the year. Okay. Okay. All right. That's helpful.
We spread financials. Our technology and our AI covers this. I think some of our competitors have got to put that in place, scramble, and do it rather quickly, and it's also untested.
Speaker #3: And it's also untested.
Tim Switzer: Okay. Got it. That was really helpful. I have a few cleanup questions, if you can entertain me real quick. The first one is, what were the net charge-offs for the bank subsidiary? I might have missed it, but I couldn't find it in the earnings materials.
Okay. Got it. That, that was really helpful. Um, I have a few cleanup questions. Um, if you can entertain me real quick that the first 1 is, what were the net charge offs for the bank subsidiary I I might have missed it but I couldn't find in the earning materials.
Speaker #5: Okay. Got it. That was really helpful. I have a few cleanup questions. If you can entertain me real quick. The first one is, what were the net charge-offs for the bank subsidiary?
Right. Frank total charge offs uh on all loans help for sale and investment at 12:31 was about 2.2%.
Speaker #5: I might have missed it, but I couldn't find it in the earning
Speaker #5: materials. Right.
Barry Sloane: Right. Frank, total charge-offs on all loans, held for sale, and investment at 12/31 was about 2.2%?
Speaker #6: Frank, total charge-offs on all loans held for sale and investment at 1231 was about 2.2%. That's right. And at the bank, Tim, to answer your question, was 8.2 million for the quarter and 23 for the year, 23 million.
Right. Um the and at the bank, Tim to answer your question was uh 8.2 million for the quarter and 20 uh, 23 for the year 23 million
Okay. Um,
Frank DeMaria: That's right. And at the bank, Tim, to answer your question, was $8.2 million for the quarter and $23 million for the year.
Okay, all right. That's helpful. And then are you able to provide
Tim Switzer: Okay. Okay. All right. That's helpful.
Speaker #5: Okay. Okay. All right. That's helpful. And then are you able to provide the breakdown you guys have in the 10Q for the gain on loans accounted for under the fair value?
Um, the breakdown, you guys have the 10q for the gain on loans, accounted for under the fair value. Um, are you able to give us kind of what portion of that was from the Alp loan?
Barry Sloane: And then are you able to provide the breakdown you guys have in the 10Q for the gain on loans accounted for under the fair value? Are you able to give us kind of what portion of that was from the ALP loans versus the SBA loans? So I'd say about oh, go ahead, Barry. Yeah. You're talking about the unrealized gain between ALP and the 7(a)? Yeah. What you guys report, the combined number was $25.6 million this quarter. Yeah. Do you have that breakout, Frank? Yeah. It was about 35% on the ALP with the remainder on the 7(a) that we're holding. Okay. With a slight loss in the NSBF, right? Correct. Okay. So I'm calculating NSBF with the $20 million loss for the full year. That's close to like a $6 to 7 million dollar loss this quarter. So it stepped up a little bit? That's right.
And then are you able to provide the breakdown you guys have in the 10Q for the gain on loans accounted for under the fair value? Are you able to give us kind of what portion of that was from the ALP loans versus the SBA loans?
Um, versus the SBA Loans.
Speaker #5: Are you able to give us kind of what portion of that was from the ALP loan versus the SBA
Yeah, you're talking about the unrealized gain between Alp and the 7A.
Speaker #5: loans? So I'd say about
Frank DeMaria: So I'd say about oh, go ahead, Barry.
Yeah. What you guys report it, it was 20. The combined number was 25.6 million. This quarter.
Speaker #6: oh, go ahead, Barry.
Barry Sloane: Yeah. You're talking about the unrealized gain between ALP and the 7(a)?
um yeah, you have that breakout Frank
Speaker #5: Yeah. You're talking about the unrealized gain between ALP and the 7A?
yeah, it was um, about
Tim Switzer: Yeah. What you guys report, the combined number was $25.6 million this quarter.
Speaker #2: Yeah. What you guys report, it was the combined number was 25.6 million this
35% on the Alp, with the remainder on the 7A that we're holding.
Speaker #2: quarter. Yeah.
Barry Sloane: Yeah. Do you have that breakout, Frank?
Speaker #5: You have that breakout,
Okay, with this with a slight loss in the nspf, right? Correct.
Speaker #5: Frank? Yeah.
Frank DeMaria: Yeah. It was about 35% on the ALP with the remainder on the 7(a) that we're holding.
Speaker #6: It was about 35% on the ALP, with the remainder on the 7A that we're—
okay, so it
Speaker #6: holding. Okay.
Tim Switzer: Okay. With a slight loss in the NSBF, right?
I'm calculating nspf with the 2000 loss for the full year. That's close to like a 6 7 million dollar loss this quarter so it stepped up a little bit.
Speaker #5: With a slight loss in the NSBF, right?
That's right, that's correct.
Frank DeMaria: Correct.
Tim Switzer: Okay. So I'm calculating NSBF with the $20 million loss for the full year. That's close to like a $6 to 7 million dollar loss this quarter. So it stepped up a little bit?
Speaker #5: Okay. Correct. So I'm calculating NSBF with the 20 million loss for the full year. That's close to like a 6, 7 million dollar loss this quarter.
Okay. All right. Um that's all for me. Thank you guys.
Thank you.
Our next question.
Speaker #5: So it stepped up a little bit.
Comes from the line of Steve Moss of Raymond. James, please go ahead and Steve.
Frank DeMaria: That's right.
Speaker #6: That's right. That's correct, Tim.
Barry Sloane: That's correct, Tim. Okay. All right. That's all for me. Thank you, guys. Thank you. Our next question comes from the line of Steve Moss of Raymond James. Please go ahead, Steve. Good afternoon, guys. Hey, Steve. Maybe just circling back to the SBA originations, I hear you in terms of the changes in the rules being a big disruptor. I know you had indicated, and you kind of touched on it already at this call, in terms of the challenges a lot of businesses faced. Kind of what are you seeing for business confidence and business activity these days versus maybe 6 or 12 months ago? Yeah. I think it's a good question, Steve. I think that the rate cuts of about 1.5% from the high have been helpful, but it is absolutely 100% K-shaped economy, haves and have-nots.
That's correct, Tim.
Tim Switzer: Okay. All right. That's all for me. Thank you, guys.
Speaker #5: Okay. All right. That's all for me.
Uh, good afternoon, guys.
Speaker #5: Thank you, guys. Thank
Frank DeMaria: Thank you.
Speaker #3: you. Our next
Operator: Our next question comes from the line of Steve Moss of Raymond James. Please go ahead, Steve.
Speaker #7: Question. Comes from the line of Steve Moss, of Raymond James. Please go ahead, Steve.
Steve Moss: Good afternoon, guys.
Speaker #8: Good afternoon,
Speaker #8: guys. Hey,
Frank DeMaria: Hey, Steve.
Steve Moss: Maybe just circling back to the SBA originations, I hear you in terms of the changes in the rules being a big disruptor. I know you had indicated, and you kind of touched on it already at this call, in terms of the challenges a lot of businesses faced. Kind of what are you seeing for business confidence and business activity these days versus maybe 6 or 12 months ago?
Speaker #8: Maybe just circling back Steve. to the SBA originations I hear you in terms of the changes in the rules being a big disruptor. I know you had indicated and kind of touched on it already this call in terms of the challenges a lot of businesses faced kind of what are you seeing for business confidence and business activity these days versus maybe 6 or 12 months
Maybe just circling back to the SBA originations, you know I hear you in terms of the changes in the rules being a a big disruptor. Um, I know you would indicated any kind of touch on a direct this call in terms of like the challenges a lot of businesses faced, you know, kind of what are you seeing for business confidence and and business activity these days versus maybe 6 or 12 months ago?
Yeah, I think it's a great. It's a good question, Steve. I think that the rate cuts of about 1 and a half percent from the high has been helpful.
Speaker #8: ago? Yeah.
Barry Sloane: Yeah. I think it's a good question, Steve. I think that the rate cuts of about 1.5% from the high have been helpful, but it is absolutely 100% K-shaped economy, haves and have-nots.
Speaker #3: I think it's a good question, Steve. I think that the rate cuts of about one and a half percent from the high has been helpful, but it is absolutely 100% K-shaped economy, halves and half-nots.
Speaker #3: And businesses servicing the lower end of the market are, as a customer, they're struggling. And businesses that are serving the middle market or the upper end are doing well.
Barry Sloane: And businesses servicing the lower end of the market, as a customer, they're struggling. And businesses that are serving the middle market or the upper end are doing well. So you really kind of need to pick your spots here. I think we're all hoping that in 2026, productivity kicks in, and therefore the inflation numbers push things down. I'm not sure we're seeing that, to be honest with you, Steve. We're seeing commodity prices going high. I think oil picked up today. And the Fed's probably not going to do anything until you get a chairman change. But overall, the confidence of businesses is good. People are spending money. The stock market is making people feel good, people that have portfolios, which is a lot bigger number today than it was 40 years ago. So I think business confidence is pretty good.
And businesses servicing the lower end of the market, as a customer, they're struggling. And businesses that are serving the middle market or the upper end are doing well. So you really kind of need to pick your spots here. I think we're all hoping that in 2026, productivity kicks in, and therefore the inflation numbers push things down. I'm not sure we're seeing that, to be honest with you, Steve. We're seeing commodity prices going high. I think oil picked up today. And the Fed's probably not going to do anything until you get a chairman change. But overall, the confidence of businesses is good. People are spending money. The stock market is making people feel good, people that have portfolios, which is a lot bigger number today than it was 40 years ago. So I think business confidence is pretty good.
Speaker #3: So, you really kind of need to pick your spots here. I think we're all hoping that in 2026, productivity kicks in, and therefore the inflation numbers push things down.
But it is absolutely 100%. K-shaped economy, hats and hats and businesses servers servicing the lower end of the market are, as, as a customer, they're they're struggling and businesses that are serving the Middle Market or the upper end are doing well. So you really, you know, you you kind of need to pick your spots here. I think we're all hoping that in 2026, productivity kicks in and therefore, the inflation numbers push things down. Um, I'm not sure we're seeing that to be honest with you. Steve, we're seeing commodity prices going going high, the oil picks up today. Um, and the FEDS probably not going to do anything until
You get a chairman change. Um, but overall
Speaker #3: I'm not sure we're seeing that, to be honest with you, Steve. We're seeing commodity prices going high. I think oil picked up today. And the Fed's probably not going to do anything until you get a chairman change.
Speaker #3: But overall, the confidence of businesses is good. People are spending money. The stock market is making people feel good. People that have portfolios, which is a lot bigger number today than it was 40 years ago.
The confidence of businesses is good. Um, people are spending money. Uh, the stock market uh is making people feel good. People that have portfolios, which is a lot bigger number today than it was 40 years ago. So I think business confidence is pretty good. Uh, businesses are willing to invest, um, particularly in in technology to make their business more efficient and reduce their expenses.
Speaker #3: So, I think business confidence is pretty good. Businesses are willing to invest, particularly in technology, to make their business more efficient and reduce their
Okay, great. And then maybe just on the aop originations just kind of curious.
Barry Sloane: Businesses are willing to invest, particularly in technology, to make their business more efficient and reduce their expenses. Okay. Great. And then maybe just on the ALP originations, just kind of curious, you had another good quarter here. Do you expect that kind of continued cadence throughout the year or a step up from these levels, or should we maybe think about some weakness here in Q1? Q1 is always a tough quarter for lending. And I can't explain why Q1 is always great in Q4. Q1 is weak, and Q4 is great. I mean, I could tell you the industry reason is people blow out their loans at the end of the year, and people borrow at the end of the year, and then they're exhausted, and they go into Q1.
Businesses are willing to invest, particularly in technology, to make their business more efficient and reduce their expenses.
Speaker #3: expenses.
Steve Moss: Okay. Great. And then maybe just on the ALP originations, just kind of curious, you had another good quarter here. Do you expect that kind of continued cadence throughout the year or a step up from these levels, or should we maybe think about some weakness here in Q1?
You know, you had another good quarter here. Do we you expect that kind of continued Cadence throughout the year or step up from these levels or do we, you know, maybe think about some some weakness here in the first quarter.
Speaker #8: Okay. Great.
Speaker #8: just on the ALP originations, just kind of curious you had another good quarter here. Do we expect that kind of continued cadence throughout the year or step up from these levels, or should we maybe think about some weakness here in the first quarter?
Um, the first quarter is always a tough quarter for Lending and I can't, I can't explain why. The first quarter is always great in the fourth quarter, first quarter is weak, in the fourth quarter is great. I mean I
I can tell you the the the industry reason is people blow out
Speaker #3: The first quarter is always a tough quarter for lending. And I can't explain why the first quarter is always great, and the fourth quarter.
Barry Sloane: Q1 is always a tough quarter for lending. And I can't explain why Q1 is always great in Q4. Q1 is weak, and Q4 is great. I mean, I could tell you the industry reason is people blow out their loans at the end of the year, and people borrow at the end of the year, and then they're exhausted, and they go into Q1.
Speaker #3: First quarter is weak in the fourth quarter is great. I mean, I could tell you the industry reason is people blow out their loans at the end of the year, and people borrow at the end of the year, and then they're exhausted.
Their loans at the end of the year and people borrow at the end of the year and then they're exhausted. And they go into the first quarter. I mean, it happens, every year it's our weakest quarter with respect to Alp loans. I think it's important to note.
Business owners, don't come to us for a 7A or an Alp they come to us for a low. Which is why
Speaker #3: And they go into the first quarter. I mean, it happens every year. It's our weakest quarter. With respect to ALP loans, I think it's important to note business owners don't come to us for a 7(a) or an [SBA] loan.
Barry Sloane: I mean, it happens every year. It's our weakest quarter. With respect to ALP loans, I think it's important to note business owners don't come to us for a 7(a) or an ALP. They come to us for a loan, which is why these daily debit MCA players make a lot of loans because people go to them for the money, whether it's costing them a 30 or 50 or a 70. They make the money, they make it readily available, and they grab it. What we do is we try to actually give them a good product. We lower the payment. It's massively different than the loans that we're competing against because of the long am. We take longer. We're more thorough, but it's a better product for them.
I mean, it happens every year. It's our weakest quarter. With respect to ALP loans, I think it's important to note business owners don't come to us for a 7(a) or an ALP. They come to us for a loan, which is why these daily debit MCA players make a lot of loans because people go to them for the money, whether it's costing them a 30 or 50 or a 70. They make the money, they make it readily available, and they grab it. What we do is we try to actually give them a good product. We lower the payment. It's massively different than the loans that we're competing against because of the long am. We take longer. We're more thorough, but it's a better product for them.
MCA players make a lot of loans because people go to them for the money.
Whether it's costing them a 30 or 50, or a 70.
Speaker #3: ALP. why these daily They come to us for a Which is debit MCA players make a lot of loans because people go to them for the money.
They make the money they make readily available and they grab it.
Speaker #3: Whether it's costing them a 30 or 50 or a 70, they make the money, they make readily available, and they grab it. We do is we try to actually give them a good product.
We do is we try to actually give them a good product? We lower the payment. It's it's massively different than for loans that are in that, that were competing against because of the long amp. We take longer, we're more thorough but it's a better product for them and we
By adding.
Speaker #3: We lower the payment. It's massively different than for loans that we're competing against, because of the long amortization. We take longer.
Speaker #3: We're more thorough, but it's a better product for them. And we by adding the ALP or the what I refer to held for sale C and I, or C and I long am, we're developing a reputation that if you're a business owner and you want a loan, that's not MCA or daily debit, which dominates this industry, and you want a low payment because you have interest rate in the high single digits or low double digits, we're the place to come to to get that long-term patient capital.
Barry Sloane: By adding the ALP or what I refer to as held for sale, C&I, or C&I long amort, we're developing a reputation that if you're a business owner and you want a loan that's not MCA or daily debit, which dominates this industry, and you want a low payment because you have interest rates in the high single digits or low double digits, we're the place to come to to get that long-term patient capital. So very bullish on ALP, or we're going to call C&I held for sale because it's going to go into a securitization. And when people come to us, I mean, I say there's always guardrails because you never know what sneaks in there. I don't think you could find SBA on our website. And we don't want to be known as the SBA lender. It was obviously with our history.
By adding the ALP or what I refer to as held for sale, C&I, or C&I long amort, we're developing a reputation that if you're a business owner and you want a loan that's not MCA or daily debit, which dominates this industry, and you want a low payment because you have interest rates in the high single digits or low double digits, we're the place to come to to get that long-term patient capital. So very bullish on ALP, or we're going to call C&I held for sale because it's going to go into a securitization. And when people come to us, I mean, I say there's always guardrails because you never know what sneaks in there. I don't think you could find SBA on our website. And we don't want to be known as the SBA lender. It was obviously with our history.
The Alp or the what I refer to help for sales, cni or cni long. Am, uh, we're developing a reputation that if you're a business owner and you want a loan, that's not MCA or daily debit which dominates this industry and you want a low payment because you have interest rates in the high single digits or low double digits where the place to come to um to get that long-term patient Capital. So very bullish on.
Alp or we're going to call cnil for sale because it's going to go into a securitization. And when people come to us
Speaker #3: So very bullish on ALP or we're going to call C and I held for sale because it's going to go into a securitization. And when people come to us, I mean, you can't I say there's always guard because you never know what sneaks in there.
You can't I I, I say, there's always guarded because you never know what sneaks in there. I don't think you can find SBA on our website.
Speaker #3: I don't think you could find SBA on our website. And we don't want to be known as the SBA lender. It was obviously with our history.
And uh, we don't want to be known as the SBA lender. It was obviously with our history. It's 1 of the few things that we did, but we make all kinds of loans to businesses, uh, including shorter and loans with a full Covenant package.
balloons and short repayments which are more traditional for borrowers, that insist on having a lower rate,
Barry Sloane: It's one of the few things that we did. But we make all kinds of loans to businesses, including shorter am loans with a full covenant package, balloons, and short repayments, which are more traditional for borrowers that insist on having a lower rate. Right. Okay. That's helpful. And then in terms of the expense side here of the equation, just kind of curious, you guys did do a good job on expenses there. I hear you in terms of continuing to upgrade systems and make things more polished. Just kind of curious how you're thinking about investments and maybe that cadence of expenses here. It's an interesting question, Steve, because I've had a lot of conversation with expenses and expense control. And there's always a push and pull on the expense line. I think that we're continuing to grow the business.
It's one of the few things that we did. But we make all kinds of loans to businesses, including shorter am loans with a full covenant package, balloons, and short repayments, which are more traditional for borrowers that insist on having a lower rate.
Right. Okay.
That's helpful. And then in terms of, you know, the expense side here of the equation, just kind of curious. You know, you guys did do a good job on expenses. There I hear you in terms of
Steve Moss: Right. Okay. That's helpful. And then in terms of the expense side here of the equation, just kind of curious, you guys did do a good job on expenses there. I hear you in terms of continuing to upgrade systems and make things more polished. Just kind of curious how you're thinking about investments and maybe that cadence of expenses here.
um, you know, continue to upgrade systems and and uh, make things more polished, just kind of curious, you know, how you're thinking about Investments and maybe that Cadence of of expenses here.
It's, it's an interesting uh, question Steve because I've had a lot of conversation with expenses and expense control and there's always a, a push and pull on on the expense line. I think that
Barry Sloane: It's an interesting question, Steve, because I've had a lot of conversation with expenses and expense control. And there's always a push and pull on the expense line. I think that we're continuing to grow the business.
Um, we're continuing to grow the business. We're putting, um, expenses, particularly into business deposit, functionality and Gathering, um, on a good note.
Barry Sloane: We're putting expenses, particularly, into business deposit functionality and gathering. On a good note, I feel very good about the C-suite with the adds. The team is very much Newtek culture, Newtek eyes. So I think that's pretty rock solid and pretty steady. I would like to add some executives in the biz dev area to help grow the business and to help Andrew Kaplan, our Chief Strategy Officer, who's done a fabulous job for us. But I don't think you'll see explosive expenses, expense growth. I think we're in good shape. Obviously, if you look at our revenue growth versus the expense line, I think we had a good year last year. We have a lot reserved for next year and the expense line, so it should be very comfortable for us. Got you.
We're putting expenses, particularly, into business deposit functionality and gathering. On a good note, I feel very good about the C-suite with the adds. The team is very much Newtek culture, Newtek eyes. So I think that's pretty rock solid and pretty steady. I would like to add some executives in the biz dev area to help grow the business and to help Andrew Kaplan, our Chief Strategy Officer, who's done a fabulous job for us. But I don't think you'll see explosive expenses, expense growth. I think we're in good shape. Obviously, if you look at our revenue growth versus the expense line, I think we had a good year last year. We have a lot reserved for next year and the expense line, so it should be very comfortable for us.
I feel very good about the C Suite, um, with the ads. Um, the team is very much, um, new tech culture and new tech. I so I think that's pretty, uh, pretty Rock Solid and pretty steady. I would like to add some Executives in the bizdev area to help grow the business and it to help Andrew Kaplan and chief strategy officer, who's done a fabulous job for us. Um,
But I don't think you'll see explosive.
Expenses, uh, expense growth. I think we're in good good step. Obviously, if you look at our Revenue growth, versus the expense line, I think we had a good year last year. Um,
We have a lot reserved.
For, you know, for next year and the expense line so it should be very comfortable for us.
Got you, I appreciate all that color there and I'll I'll step back here in the queue. Thank you very much.
Thank you, Steve.
Thank you.
Expenses, uh, expense growth. I think we're in good good step. Obviously, if you look at our Revenue growth, versus the expense line, I think we had a good year last year. Um,
Our next question.
Steve Moss: Got you.
For, you know, for next year and the expense line so it should be very comfortable for us.
Comes from the line of Christopher Nolan of ladenburg sammon & Company. Your question, please. Christopher
Barry Sloane: I appreciate all that color there, and I'll step back here in the queue. Thank you very much. Thank you, Steve. Thank you. Our next question comes from the line of Christopher Nolan of Ladenburg Thalmann & Co. Inc. Your questions, please, Christopher. Hey, guys. Thank you for taking my questions. Looking at the forward guidance, it looks like the efficiency ratio is projected to total revenues percent, expenses percentage of revenues, to stay at a pretty flat current level, 65% to 56%. Assuming that's true, what do you see as the leverage for EPS growth in 2026? Well, Chris, I hope I beat that expense line, but we've got that out there.
I appreciate all that color there, and I'll step back here in the queue. Thank you very much.
Barry Sloane: Thank you, Steve.
Got you, I appreciate all that color there, and I'll step back here in the queue. Thank you very much.
Operator: Thank you. Our next question comes from the line of Christopher Nolan of Ladenburg Thalmann & Co. Inc. Your questions, please, Christopher.
Thank you, Steve.
Thank you.
Our next question.
Hey guys, thank you for taking my questions, um, looking at the 4 guests. Um, it looks like, um, the efficiency ratio is projected to, you know, to revenues percent. Um,
Christopher Nolan: Hey, guys. Thank you for taking my questions. Looking at the forward guidance, it looks like the efficiency ratio is projected to total revenues percent, expenses percentage of revenues, to stay at a pretty flat current level, 65% to 56%. Assuming that's true, what do you see as the leverage for EPS growth in 2026?
Comes from the line of Christopher Nolan of Ladenburg. Same in in company—your question, please. Christopher?
Expenses percentage of revenues, um, to stay pretty flat with current levels, 55% to 56%.
Assuming that's true. What do you see as The Leverage?
For EPS growth in 2026.
Hey guys. Thank you for taking my questions. Um, looking at the 4. Uh, guys. Um, it looks like um, the efficiency ratio is projected to, you know, total revenues percent. Um,
Expenses as a percentage of revenues, um, to stay pretty flat with current levels, 65% to 56%.
Assuming that's true. What do you see as The Leverage?
Barry Sloane: Well, Chris, I hope I beat that expense line, but we've got that out there.
For EPS growth in 2026.
Barry Sloane: I see the big leverage in continuing to grow business deposits from payroll, from merchant services to lower that cost of funds so that the dollars that we're spending to build out more inexpensive deposits will give us a lower recurring liability cost going forward. In addition, the ALP loans or the C&I loans held for sale, they're bigger and they're larger. I won't say they're easier to do, but we're seeing more flow there. So it's going to be easier to get volume from my mouth to God's ears in that particular space and grow it versus the SBA business where the average loan size is, call it $400,000. The average loan size in ALP is $4.5 to 5 million. So that's, I think, where we see the leverage. Now, the other thing that's important is there's leverage and expense ratio with the bank and at the holdco.
I see the big leverage in continuing to grow business deposits from payroll, from merchant services to lower that cost of funds so that the dollars that we're spending to build out more inexpensive deposits will give us a lower recurring liability cost going forward. In addition, the ALP loans or the C&I loans held for sale, they're bigger and they're larger. I won't say they're easier to do, but we're seeing more flow there. So it's going to be easier to get volume from my mouth to God's ears in that particular space and grow it versus the SBA business where the average loan size is, call it $400,000. The average loan size in ALP is $4.5 to 5 million. So that's, I think, where we see the leverage. Now, the other thing that's important is there's leverage and expense ratio with the bank and at the holdco.
Well Chris, I hope I beat that expense line but uh, you know, we we've got that out there. Um, I see the big leverage in continuing to grow business deposits from payroll from merchant services to lower lower that cost of funds. So that you know, the dollars that were spending to build out. Um,
More. Uh,
Liability costs going forward. Um, in addition the um,
Well, Chris, I hope I beat that expense line, but uh, you know, we've got that out there. Um, I see the big leverage in continuing to grow business deposits from payroll, from merchant services, to lower that cost of funds. So that, you know, the dollars that we're spending to build out, um,
The Alp loans or the cni loans held for sale. They're bigger and they're larger. I won't say they're easier to do but we're seeing more flow there so it's going to be easier to get volume.
More inexpensive deposits will give us a lower recurring liability costs going forward. Um, in addition, the um,
The ALP loans or the CNI loans held for sale—they're bigger and they're larger. I would say they're easier to do, but we're seeing more flow there, so it's going to be easier to get volume.
From my amount that God's ears in that particular space and grow it versus the SBA business. Where the average lowest sizes, call it 400,000, the average loan size and Alp is, you know, 4 and a half to 5 million. So that's I think where we see the leverage. Now, the other thing that's important is there's leverage and, uh, an expense ratio with the bank and at the hold code, um, look, we're we're, we need to continue to watch the expense line. Uh, I am hopeful that we beat the expense line this year versus what's projected, but I appreciate you pointing that out.
Barry Sloane: Look, we need to continue to watch the expense line. I am hopeful that we beat the expense line this year versus what's projected, but I appreciate you pointing that out. Okay. Great. Then it looks like margin expansion hopefully will be the leverage there if I heard you correctly. Yeah. Should be. Yeah. And I guess as a follow-up, and congratulations on the deposit growth because I know that's something that you guys were aiming for for a long time. Have you guys put in some sort of new mechanism where you deposit the loan into a Newtek deposit account for that client or something which is sort of helping goosing along the deposit growth? Yeah.
Look, we need to continue to watch the expense line. I am hopeful that we beat the expense line this year versus what's projected, but I appreciate you pointing that out.
Um, okay great, thanks, it looks like margin expansion. Hopefully will be the leverage their, if I heard you correctly. Yep, should be on.
Christopher Nolan: Okay. Great. Then it looks like margin expansion hopefully will be the leverage there if I heard you correctly.
From my mouth to God's ears, and that particular space, and grow it versus the SBA business, where the average lowest size is, call it $400,000. The average loan size in ALP is, you know, four and a half to five million. So that's, I think, where we see the leverage. Now, the other thing that's important is there's leverage and an expense ratio with the bank and at the holdco. Um, look, we need to continue to watch the expense line. I am hopeful that we beat the expense line this year versus what's projected, but I appreciate you pointing that out.
And and, um, I I guess as a follow-up and congratulations on the deposit growth because I know that's something that you guys were aiming for for a long time.
Barry Sloane: Yeah. Should be. Yeah.
Christopher Nolan: And I guess as a follow-up, and congratulations on the deposit growth because I know that's something that you guys were aiming for for a long time. Have you guys put in some sort of new mechanism where you deposit the loan into a Newtek deposit account for that client or something which is sort of helping goosing along the deposit growth?
Um, have you guys put in some sort of new mechanism where, you know, you deposit the loan into a new tech?
Um, okay great, thanks. It looks like March and expansion. Hopefully will be the leverage their, if I heard you correctly. Yep, should be on.
deposit account for that client or something, which
Is sort of you know helping goosing along the deposit growth.
yeah, so when you applied for a loan, um,
And, and, um, I guess as a follow-up—and congratulations on the deposit growth, because I know that's something that you guys were aiming for for a long time—um, have you guys put in some sort of new mechanism where, you know, you deposit the loan into a new tech?
The data used to apply for the loan automatically populates.
Barry Sloane: Yeah.
Deposit account for that client or something, which, you know, is sort of, you know, helping goosing along the deposit growth.
Barry Sloane: So when you apply for a loan, the data used to apply for the loan automatically populates the application for a bank deposit, which goes through KYC, AML, BSA group so that the deposit account is approved without a separate application, but using the data that we get from a loan. So that's made that a lot more automatic. And we are going forward, and it's been this way, I think, for about six or seven months. We are requiring the borrowers to make the loan payments out of that Newtek account. Oh, okay. Great. And that generally is a low-interest-bearing account, a core deposit account. Is that correct? 1%. Yeah. Yeah. So you're just basically that's going to be a driver for lower deposit costs. Okay. Good stuff. Yeah. And we got to increase the utilization.
So when you apply for a loan, the data used to apply for the loan automatically populates the application for a bank deposit, which goes through KYC, AML, BSA group so that the deposit account is approved without a separate application, but using the data that we get from a loan. So that's made that a lot more automatic. And we are going forward, and it's been this way, I think, for about six or seven months. We are requiring the borrowers to make the loan payments out of that Newtek account.
The application for a bank deposit, which goes through kyc, AML BSA group.
Yes, so when you applied for a loan, um,
So that the deposit account is approved without a separate application but using the data that we get from a loan so that's made that a lot more automatic and we are going forward and it's been this way I think for about 6 or 7 months, we are requiring.
The borrowers to make the loan payments, out of, that new tech account.
Oh, okay, great.
And that generally is a low interest. Bearing a, it's a court deposit account. Is that correct? The 1 1%? Yeah.
The data used to apply for the loan automatically populates. The application for a bank deposit, which goes through KYC, AML, BSA group, so that the deposit account is approved without a separate application but using the data that we get from a loan, so that's made that a lot more automatic. And we are going forward, and it's been this way, I think, for about six or seven months, we are requiring.
Yeah, so you're just basic. That's going to be a driver for lower deposit costs. Okay.
Christopher Nolan: Oh, okay. Great. And that generally is a low-interest-bearing account, a core deposit account. Is that correct?
The borrowers to make the loan payments, out of that Newtek account.
Um, increase the utilization. So if my staff is listening and
Oh, okay, great.
Barry Sloane: 1%. Yeah.
Christopher Nolan: Yeah. So you're just basically that's going to be a driver for lower deposit costs. Okay. Good stuff. Yeah.
And that generally is a low interest bearing against a court deposit account. Is that correct 1 1%? Yeah.
Barry Sloane: And we got to increase the utilization.
Yeah, so you're just basic. That's going to be a driver for lower deposit costs. Okay.
Barry Sloane: So if my staff is listening, and hopefully they are, they've got to diligently talk to customers and explain that this is, we think, one of the best accounts out there with zero fee for ACH, zero fee for wire, higher cost, move your money back and forth between savings and checking. How does that sound, Chris? Sounds great. Okay. Thanks, Barry. That's the future for me. Thank you. Appreciate it. Bye. Bye. Thank you. Again, to ask a question, please press star 11 on your telephone. Again, that's star 11 on your telephone to ask a question. Our next question comes from the line of Dylan Hines of B. Riley Securities. Your line is open, Dylan. Hey. Thanks for taking the question.
So if my staff is listening, and hopefully they are, they've got to diligently talk to customers and explain that this is, we think, one of the best accounts out there with zero fee for ACH, zero fee for wire, higher cost, move your money back and forth between savings and checking. How does that sound, Chris?
They've got to diligently talk to customers and explain that. This is we think 1 of the best accounts out there with zero fee, for AC zero fee for wire higher cost. You move your money back and forth between savings and checking. How's that sound Chris?
Sounds great. Okay, thanks, bye. Future for me. Thank you, appreciate it. Bye. Thank you again to ask a question. Please press star. 1 1 on your telephone again. That's star. 1, 1 on your telephone, to ask a question.
Our next question.
Christopher Nolan: Sounds great. Okay. Thanks, Barry.
Um, that increases the utilization. So if my staff is listening—and hopefully they are—they've got to diligently talk to customers and explain that. This is, we think, one of the best accounts out there, with zero fee for ACH, zero fee for wire. Higher cost, you move your money back and forth between savings and checking. How's that sound, Chris?
Barry Sloane: That's the future for me. Thank you. Appreciate it.
Christopher Nolan: Bye.
Barry Sloane: Bye.
Operator: Thank you. Again, to ask a question, please press star 11 on your telephone. Again, that's star 11 on your telephone to ask a question. Our next question comes from the line of Dylan Hines of B. Riley Securities. Your line is open, Dylan.
Sounds great. Okay, thanks, Barry. There's a future for me. Thank you. Appreciate it.
Comes from the line of Dylan Hines. I'll B Riley Securities here. The line is open, Dylan.
Bye.
Thank you again. To ask a question, please press star, 1, 1 on your telephone again. That's star, 1, 1, 1 on your telephone to ask a question.
Our next question.
Operator: Hey. Thanks for taking the question.
Comes from the line of Dylan Hines. I'll be Riley Securities here. Your line is open, Dylan.
Hey thanks for taking the question. Uh I was wondering, could you share your perspective on how new Tech's SBA Loans are performing versus the many others in the SBA sector that don't have your underwriting and other business services offerings. That create better long-term customer relationships.
Barry Sloane: I was wondering, could you share your perspective on how Newtek's SBA loans are performing versus the many others in the SBA sector that don't have your underwriting and other business services offerings that create better long-term customer relationships? I appreciate it. I think if you go to SBA.gov, what you'll basically see is that our 5-year and 10-year charge-off rates are about industry average. And that's kind of where we'd like to be right in that particular right in that particular bucket. I mean, number one, it fulfills our mission of making loans to business owners all over the United States, whether they're big loans or small loans and whatever, whether it's a woman or a man or people who are green or yellow, whatever they are. So we put the product out there.
I was wondering, could you share your perspective on how Newtek's SBA loans are performing versus the many others in the SBA sector that don't have your underwriting and other business services offerings that create better long-term customer relationships?
Barry Sloane: I appreciate it. I think if you go to SBA.gov, what you'll basically see is that our 5-year and 10-year charge-off rates are about industry average. And that's kind of where we'd like to be right in that particular right in that particular bucket. I mean, number one, it fulfills our mission of making loans to business owners all over the United States, whether they're big loans or small loans and whatever, whether it's a woman or a man or people who are green or yellow, whatever they are. So we put the product out there.
New text: SBA loans are performing versus the many others in the SBA sector that don't have your underwriting and other business services offerings. That creates better long-term customer relationships.
I, I appreciate it. I think if you go to sba.gov, which you'll basically see is that, um, you know, our 5-year and 10-year charge on rates are about industry, average, and that's kind of where we'd like to be, uh, right in that particular right in that particular bucket. I mean, number 1. It fulfills. Our mission of making loans to business owners all over the United States, whether they're big loans, or small loans, and whatever whether it's a woman or a, man, or a people agreeing or yellow or whatever they are.
So, um, we put the product out there. Um, we're very quick to pre-qualify the customer.
I, I appreciate it. I think if you go to sba.gov, which you'll basically see is that, um, you know, our 5 year and 10 year, charge on rates are about industry, average. And that's kind of where we'd like to be, uh, right in that particular right in that particular bucket. I mean, number 1. It fulfills. Our mission of making loans to business owners all over the United States, whether they're big loans, or small loans, and whatever whether it's a woman or a man, or a people who are green or yellow or whatever they are,
Barry Sloane: We're very quick to pre-qualify the customer and then take in all that other information. So I would say we're average. I think now, if you look at our margins, they typically dwarf some of our big competitors in this space. So I would strongly suggest that you look at our margins versus some of our competitors with respect to ROAA, ROTCE, and gain on sale. Once again, we believe that being able to put the loan out, treat the customer well, you can get a full margin loan. You don't have to be prime plus one or prime plus one and a half. Got it. Thanks for the color. Thank you. Thank you. I would now like to turn the conference back to Barry Sloane for closing remarks. Sir?
We're very quick to pre-qualify the customer and then take in all that other information. So I would say we're average. I think now, if you look at our margins, they typically dwarf some of our big competitors in this space. So I would strongly suggest that you look at our margins versus some of our competitors with respect to ROAA, ROTCE, and gain on sale. Once again, we believe that being able to put the loan out, treat the customer well, you can get a full margin loan. You don't have to be prime plus one or prime plus one and a half.
So, um, we put the product out there. Um, we're very quick to pre-qualify the customer.
And then take in all that other information. So I would say we're average, I think, uh, now if you look at our margins, um, they typically dwarf some of our big competitors in the space, so I would strongly suggest that you look at our margins versus some of our competitors with respect to roaa rotce and gain on sale.
Believe that um being able to um put the loan out, treat the customer. Well you can get a full margin loan. You don't have to be prime plus 1 or prime plus 1 and a half.
And then take in all that other information. So I would say we're average, I think, uh, now if you look at our margins, um, they typically dwarf some of our big competitors in the space, so I would strongly suggest that you look at our margins versus some of our competitors with respect to roaa rotce and gain on sale.
Got it. Thanks for the caller.
Thank you.
Um, once again, we believe that, um, being able to, um, put the loan out, treat the customer well—you can get a full margin loan. You don't have to be prime plus 1 or prime plus 1 and a half.
Dillon Heins: Got it. Thanks for the color.
Barry Sloane: Thank you.
Got it. Thanks for the caller.
Operator: Thank you. I would now like to turn the conference back to Barry Sloane for closing remarks. Sir?
Thank you.
Thank you. I would now like to turn the conference back to Barry Sloane for closing remarks sir. Well, we we appreciate that and uh, we appreciate the questions and we appreciate of the hard work. The team has done to make this better and more concise. Um, we look forward to, um,
Barry Sloane: Well, we appreciate that, and we appreciate the questions, and we're appreciative of the hard work the team has done to make this better and more concise. We look forward to being able to continue to drive results in 2026 with the growth rates that we had in 2025. We've got some challenges, but good momentum at our back. We want to follow in the footsteps of other disruptors in this industry, but within our category of serving SMEs, SMBs, and independent business owners because it's pretty untapped, and we've got a two-decade head start on most of the players in the space. So we thank everybody for attending and look forward to reporting in 2026. This concludes today's conference call. Thank you for participating. You may now disconnect.
Barry Sloane: Well, we appreciate that, and we appreciate the questions, and we're appreciative of the hard work the team has done to make this better and more concise. We look forward to being able to continue to drive results in 2026 with the growth rates that we had in 2025. We've got some challenges, but good momentum at our back. We want to follow in the footsteps of other disruptors in this industry, but within our category of serving SMEs, SMBs, and independent business owners because it's pretty untapped, and we've got a two-decade head start on most of the players in the space. So we thank everybody for attending and look forward to reporting in 2026.
Thank you. I would now like to turn the conference back to Barry Sloane for closing remarks sir. Well, we we appreciate that and uh, we appreciate the questions and we appreciate of the hard work. The team has done to make this better and more concise. Um, we look forward to, um,
being able to continue to drive results in 2026 with the growth rates that we had in 2025. Um, we've got some challenges but good momentum at our back at our back and we want to follow in the footsteps of other disruptors in this industry. But within our category of serving smes smbs and independent business owners, because it's pretty untapped, and we've got, uh, 2 decade head start on most of the players in the space. So we we thank everybody for attending and look forward to reporting in 2026.
This concludes today's conference call, thank you for participating. You may now disconnect
Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.
being able to continue to drive results in 2026 with the growth rates that we had in 2025. Um, we've got some challenges but good momentum at our back at our back and we want to follow in the footsteps of other disruptors in this industry. But within our category of serving smes smbs and independent business owners, because it's pretty untapped, and we've got, uh, 2 decade head start on most of the players in the space. So we we thank everybody for attending and look forward to reporting in 2026.
This concludes today's conference call. Thank you for participating. You may now disconnect.
