BOCA RATON, Fla. - NewtekOne, Inc. (NASDAQ: NEWT), a financial holding company, announced today the appointment of Mr. Andrew Kaplan as its Chief Strategy Officer. With over 35 years of experience in banking and financial services, Kaplan brings a wealth of knowledge to the NewtekOne team, particularly in digital banking and business line management.
Kaplan's prior role as Chief Digital Officer at Flagstar Bank, N.A. saw him revitalize a digital brand into a leading digital bank, achieving significant deposit growth and a surge in account numbers within a two-year period. His career spans various senior positions where he has been responsible for developing retail products and services, treasury management, and institutional deposits, among other areas.
Barry Sloane, Chairman, President, and CEO of NewtekOne, praised Kaplan's unique capabilities and foresight in recognizing the potential for innovation and development within NewtekOne's banking and business services model. Sloane emphasized that Kaplan's expertise would be instrumental in enhancing the client experience and advancing the Newtek Advantage®, which aims to offer value-added business solutions to commercial clients.
Kaplan expressed his enthusiasm for joining NewtekOne and his commitment to leveraging the company's comprehensive offerings to foster growth, enhance client success, and reinforce NewtekOne's market leadership.
NewtekOne has been serving independent business owners across the United States since 1999, offering a broad spectrum of business and financial solutions under the Newtek® brand. These include banking, lending, payment processing, technology, insurance, and payroll services, among others.
This news comes as part of NewtekOne's ongoing efforts to expand its suite of financial solutions and deliver state-of-the-art services to its clientele. The information is based on a press release statement issued by the company.
In other recent news, NewtekOne, Inc. has reported significant developments. The company recently announced the sale of its subsidiary, Newtek Technology Solutions, Inc., to Paltalk, Inc., a transaction involving a $4 million cash payment and 4 million shares of Paltalk's newly created preferred stock. This divestiture follows NewtekOne's transition to a financial holding company, a move necessitated by its acquisition of Newtek Bank.
Simultaneously, NewtekOne has reported a successful second quarter for 2024, surpassing analysts' expectations with earnings per share (EPS) of $0.43. The company also reaffirmed its full-year EPS guidance, ranging between $1.85 and $2.05. This strong performance was attributed to robust deposit and loan growth, as well as the successful launch of the Newtek Advantage business portal and a recent securitization.
These recent developments highlight NewtekOne's strategic maneuvers and financial resilience. While the company has divested a key technology subsidiary, it continues to demonstrate strong financial performance, exceeding analysts' expectations. These are indeed interesting times for NewtekOne, as it navigates a changing landscape while maintaining a focus on growth and performance.
InvestingPro Insights
In light of NewtekOne's strategic appointment and its focus on enhancing the client experience, it's particularly relevant to consider the company's financial health and market performance. According to real-time data from InvestingPro, NewtekOne (NASDAQ: NEWT) boasts a market capitalization of $325.33 million, demonstrating a significant presence in the financial sector. This is complemented by a P/E ratio of 7.43, indicating that the company's shares are trading at a value that may catch the eye of value investors looking for earnings potential.
The company's robust gross profit margin of 83.07% over the last twelve months as of Q2 2024 underscores its efficiency in managing costs relative to revenue, which is a critical aspect of Kaplan's potential impact on NewtekOne's profitability and client services. Moreover, with a dividend yield of 6.07%, NewtekOne stands out as a potentially attractive option for income-focused investors, especially considering the company's track record of maintaining dividend payments for 10 consecutive years.
Among the InvestingPro Tips, two particularly noteworthy points for prospective and current investors are NewtekOne's high shareholder yield and the fact that analysts predict the company will be profitable this year. These insights could be pivotal for investors making decisions in the current financial landscape. For more in-depth analysis and additional InvestingPro Tips, there are 6 more tips available for NewtekOne on InvestingPro, which can be found at https://www.investing.com/pro/NEWT.
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