NewtekOne, Inc.

NewtekOne, Inc. (NASDAQ:NEWT) is a financial services company that began as Newtek Business Services Corp. in 1998 and underwent a significant transformation in 2014 when it converted to a Business Development Company (BDC). The company made another pivotal change in 2023 when it transitioned from a BDC to a financial holding company following its acquisition of National Bank of New York City. Headquartered in Boca Raton, Florida, with additional offices across multiple states, NewtekOne has evolved into a technology-enabled financial services provider focused on serving small and medium-sized businesses across the United States.

Over the past few years, NewtekOne has undergone a fundamental business transformation that represents one of the most significant strategic pivots in the company's history. The most important development was the transition from a Business Development Company (BDC) to a financial holding company in 2023, culminating with the acquisition of National Bank of New York City in January 2023. This transformation shifted the company from primarily being an investment vehicle to becoming a full-service commercial bank. The company has heavily invested in technology infrastructure and digital capabilities, launching the "Newtek Advantage" platform that serves as a comprehensive business portal for customers. This platform integrates banking, lending, payments, and other business services into a single digital interface. The company hired Ron Lay as Chief Technology Officer to spearhead these digital initiatives and opened a new office in Wilmington, North Carolina, to support expanded commercial banking operations. Product diversification has been another key strategic focus. While maintaining its core SBA 7(a) lending business, NewtekOne has expanded into conforming commercial and industrial loans, commercial real estate lending, and the Alternative Loan Program (ALP) for businesses that don't qualify for SBA financing. The company successfully completed multiple ALP loan securitizations, demonstrating its ability to access capital markets for funding. The banking strategy emphasizes low-cost deposit gathering through zero-fee business accounts and competitive digital banking services. Management has focused on building sticky customer relationships by cross-selling multiple services to the same business customers, creating an integrated financial services ecosystem. Recent initiatives include expanding commercial deposit capabilities and targeting the estimated 30 million independent business owners in the United States as potential customers.