BOCA RATON, Fla., April 14, 2025 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (the "Company") (NASDAQ:NEWT) announced the termination of three office space leases covering roughly 52,000 square feet, which will reduce the Company's annual expenses by approximately $2.0 million on a recurring basis beginning in the second quarter of 2025. These lease terminations reflect the Company's strategic shift to a mostly remote workforce and the Company's technological capabilities to produce growth without having to use expensive branches, traditional bankers, brokers, or business development officers. The Company's technology-enabled platform allows customer-facing, on-camera staff to gather deposits, originate loans, and provide vital business and financial solutions to clients.
Barry Sloane, CEO, President and Chairman, said, "Today's announcement further demonstrates our growth strategy that emphasizes technology to communicate and interact with our independent business owner clients efficiently, effectively, and on demand. We believe this strategy positions the Company to continue to produce above-average profitability and growth in earnings and tangible book value per share for shareholders. Not only do the lease terminations align with our strategy of having staff on camera to service clients, but they also create meaningful cost savings, which should support our already strong profitability profile. Despite the Company's healthy pace of growth, we are extremely conscious of operating expenses and are constantly looking for ways to become more efficient without sacrificing quality. Our focus on expenses contributes to our attractive level of pre-provision net revenue, which comes in particularly handy in more volatile environments such as what the world is currently experiencing."
Mr. Sloane continued, "Just over two years ago, in January 2023, we acquired what is now known as Newtek Bank, and we have transformed this single-branch, nationally chartered bank with antiquated manual processes, 1,400 deposit accounts, and roughly $200 million of assets into a technology-enabled bank with a national presence. Our many successes since converting from a business development company to a financial holding company include Newtek Bank digitally opening 15,000+ deposit accounts and growing its loan portfolio from $167 million to $774 million as of December 31, 2024. Moreover, we have increased our consolidated balance sheet to $2.1 billion at December 31, 2024. We believe that NewtekOne is still in the early innings of this iteration of its journey."
About NewtekOne, Inc.
NewtekOne®, Your Business Solutions Company®, is a financial holding company, which along with its bank and non-bank consolidated subsidiaries (collectively, "NewtekOne"), provides a wide range of business and financial solutions under the Newtek® brand to independent business owners. Since 1999, NewtekOne has provided state-of-the-art, cost-efficient products and services and efficient business strategies to independent business owners across all 50 states to help them grow their sales, control their expenses, and reduce their risk.
NewtekOne's and its subsidiaries' business and financial solutions include: banking (Newtek Bank, N.A.), Business Lending, SBA Lending Solutions, Electronic Payment Processing, Accounts Receivable Financing & Inventory Financing, Insurance Solutions and Payroll and Benefits Solutions. In addition, NewtekOne offers its clients the Technology Solutions (Cloud Computing, Data Backup, Storage and Retrieval, IT Consulting and Web Services) provided by Intelligent Protection Management Corp. (IPM.com).
Newtek®, NewtekOne®, Newtek Bank®, National Association, Your Business Solutions Company®, One Solution for All Your Business Needs® and Newtek Advantage are registered trademarks of NewtekOne, Inc.
Note Regarding Forward-Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of the rules and regulations of the Private Securities Litigation and Reform Act of 1995 are based on the current beliefs and expectations of NewtekOne's management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. Information regarding loan and deposit metrics consist of preliminary estimates and are subject to change with our filings with regulatory agencies and the filing of the Company's Form 10-Q for the period ended March 31, 2025. See "Note Regarding Forward-Looking Statements" and the sections entitled "Risk Factors" in our filings with the Securities and Exchange Commission which are available on NewtekOne's website (https://investor.newtekbusinessservices.com/sec-filings) and on the Securities and Exchange Commission's website (www.sec.gov). Any forward-looking statements made by or on behalf of NewtekOne speak only as to the date they are made, and NewtekOne does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
SOURCE: NewtekOne, Inc.
Investor Relations & Public Relations
Contact: Bryce Rowe
Telephone: (212) 273-8292 / [email protected]
