NewtekOne Inc. Depositary Shares Non-Cumulative Perpetual Preferred Stock Series B (NEWTP)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach NewtekOne's Series B preferred as a lender to small businesses wearing a preferred-security wrapper. The underlying bank has earned money: in fiscal FY2025, filed net income was $60.5M and diluted EPS $2.18; in FY2024, $50.9M and $1.96; in FY2023, $47.3M and $1.88. The latest filed quarter, fiscal Q2 2026 ended 2026-06-30, showed net income of $14.6M and diluted EPS of $0.47. FairStock's calculations put ROE at 18.04%, ROCE at 5.18%, debt-to-equity at 1.35, P/B at 1.92, and Piotroski at 2/9. The 59/100 FairStock Score is middling. The preferred yields 8.77% at the 2026-10-13 close of $24.24, which is attractive only if the bank's credit remains sound. But these are non-cumulative preferreds: if a dividend is skipped, it does not accrue. The bank's niche in SBA and commercial lending may create some relationship and underwriting expertise, but it is not a wide moat; regional and specialty lenders compete hard. FairStock classifies the stock as a slow grower shrinking, with profit down 7.9% a year over four years, even though filed annual net income rose from FY2023 to FY2025. Leverage is real, and the Piotroski score warns of weak financial signals. CET1, net interest margin and combined ratio are not in the data, so I cannot judge credit strength or margin trend properly. At $24.24, the preferred looks fairly priced for its yield, not a bargain. I would need more bank-specific credit and capital data before trusting the dividend.

In plain English: NewtekOne is a bank that lends mostly to small and medium-sized businesses. It has been profitable, but its growth record is uneven and it carries meaningful debt. At $24.24, the preferred shares pay about 8.77%, but the dividends are not cumulative, so the price looks roughly fair rather than clearly cheap; the key question is whether the bank keeps paying.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer