NASDAQ$NEWT
Newtekone Inc · Q1 2022 earnings
Q1 2022 earnings · · Investor relations
Briefing
Announced first quarter 2022 financial results, with SBA 7(a) loan fundings increasing by 56.5%.
Newtek Business Services Corp. reported its Q1 2022 financial results, noting a decrease in total investment income by 41.4% compared to Q1 2021, which included non-recurring PPP fee income. However, the company saw a 56.5% increase in SBA 7(a) loan fundings and declared a second quarter dividend of $0.752 per share, a 7.1% increase over Q2 2021.
- Total investment income decreased by 41.4% to $20.3 million due to the absence of Paycheck Protection Program (PPP) fee income.
- Net investment income decreased by 94.1% on a per share basis to $1.0 million, or $0.04 per share.
- Adjusted net investment income (ANII) decreased by 31.4% on a per share basis to $17.3 million, or $0.72 per share.
- SBA 7(a) loan fundings increased by 56.5% to $163.3 million.
Headline financials
Revenue & EPS history
Newtekone · Revenue · Quarterly
$20.3M
Forward guidance
Newtek forecasts funding approximately $750 million of SBA 7(a) loans and closing approximately $150 million SBA 504 loans for the full year 2022.
Tailwinds
- NSBF forecasts funding approximately $750 million of SBA 7(a) loans for the full year 2022, which represents a 33.8% increase over $560.6 million of SBA 7(a) loans funded in 2021.
- NBL forecasts closing approximately $150 million SBA 504 loans for the full year 2022, which would represent a 66.5% increase over $90.1 million of SBA 504 closings in 2021.
- The Company has paid and declared dividends totaling $1.40 per share for the first and second quarters of 2022, which represents a 16.7% increase over dividends paid in the first and second quarters of 2021.
- Newtek's joint venture, Newtek Conventional Lending LLC (“NCL”), closed a conventional commercial loan securitization with the sale of $56.3 million of Class A Notes
- NewTracker® enables the company to remotely originate all business opportunities beyond lending through strategic alliance partnerships without the traditional use of branches, brokers, business development officers, and frequent salesforce contact
Headwinds
- The pandemic influenced business results in 2020 and 2021, and Newtek's goal in 2022 is to replace approximately $50 million in PPP fee income earned in 2021.
- Net asset value (“NAV”) of $398.5 million, or $16.49 per share, at March 31, 2022; a decrease of (1.4)% on a per share basis, compared to NAV of $16.72 per share at December 31, 2021.
- Total investment income of $20.3 million for the three months ended March 31, 2022; a decrease of (41.4)% over total investment income of $34.7 million for the three months ended March 31, 2021.
- Net investment income of $1.0 million, or $0.04 per share, for the three months ended March 31, 2022, which represents a (94.1)% decrease, on a per share basis, compared to net investment income of $15.2 million, or $0.68 per share, for the three months ended March 31, 2021.
- Adjusted net investment income ("ANII") of $17.3 million, or $0.72 per share, for the three months ended March 31, 2022; a decrease of (31.4)%, on a per share basis, compared to ANII of $23.5 million, or $1.05 per share, for the three months ended March 31, 2021.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2022
+0.8%
Avg return
Earnings day
+1.1%
Avg return
5 days after
+3.6%
Avg return
30 days after
52%
33 / 63 earnings
Positive
+10.7%
Q2 2013
Best reaction
-19.8%
Q4 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +3.9% | +3.9% | +6.9% | |
| Q4 2025 | -4.2% | +6.3% | +18.2% | |
| Q3 2025 | -3.3% | -0.6% | +1.2% | |
| Q4 2024 | +6.5% | -15.6% | -12.0% | |
| Q3 2024 | +7.8% | +17.1% | +6.4% | |
| Q2 2024 | -3.5% | -6.4% | -11.6% | |
| Q1 2024 | +10.5% | +14.5% | +18.7% | |
| Q4 2023 | +5.2% | +4.4% | +9.6% | |
| Q3 2023 | -10.3% | -11.0% | -8.0% | |
| Q2 2023 | +3.7% | +7.2% | -1.4% | |
| Q1 2023 | +2.6% | -5.4% | +30.1% | |
| Q4 2022 | -19.8% | -17.9% | -31.5% | |
| Q3 2022 | +4.6% | +2.8% | +15.2% | |
| Q2 2022 | -0.0% | +6.1% | +0.5% | |
| Q1 2022 | -0.1% | -1.7% | -2.9% | |
| Q4 2021 | -1.8% | +3.9% | +3.5% | |
| Q3 2021 | -8.5% | -5.7% | -4.4% | |
| Q2 2021 | +1.2% | +8.1% | +11.8% | |
| Q1 2021 | +2.5% | +9.1% | +33.8% | |
| Q4 2020 | -0.3% | +3.6% | +4.8% | |
| Q3 2020 | -0.9% | +0.8% | +7.9% | |
| Q2 2020 | -0.3% | +2.8% | -1.7% | |
| Q1 2020 | +1.4% | +2.5% | +22.3% | |
| Q4 2019 | -4.2% | -16.5% | -45.7% | |
| Q3 2019 | +1.7% | +0.4% | +4.8% | |
| Q2 2019 | -0.2% | +2.0% | +11.2% | |
| Q1 2019 | +5.9% | +9.8% | +0.8% | |
| Q4 2018 | -0.6% | +0.3% | +5.2% | |
| Q3 2018 | +3.9% | -0.2% | +0.8% | |
| Q2 2018 | +0.5% | +3.4% | +10.2% | |
| Q1 2018 | +3.7% | +4.4% | +13.5% | |
| Q4 2017 | +4.4% | +7.9% | +4.9% | |
| Q3 2017 | -2.5% | -1.9% | +2.7% | |
| Q2 2017 | +1.2% | +1.4% | +2.1% | |
| Q1 2017 | +4.3% | +3.1% | +5.5% | |
| Q4 2016 | -1.3% | +3.3% | -1.5% | |
| Q3 2016 | -5.2% | -1.2% | +1.5% | |
| Q2 2016 | -0.9% | -2.8% | +3.7% | |
| Q1 2016 | +4.4% | — | — | |
| Q4 2015 | +10.6% | — | — | |
| Q3 2015 | +1.2% | — | — | |
| Q2 2015 | -1.0% | — | — | |
| Q1 2015 | +3.2% | — | — | |
| Q4 2014 | -5.5% | — | — | |
| Q3 2014 | +4.3% | — | — | |
| Q2 2014 | +0.0% | — | — | |
| Q1 2014 | -3.7% | — | — | |
| Q4 2013 | -0.4% | — | — | |
| Q3 2013 | +1.0% | — | — | |
| Q2 2013 | +10.7% | — | — | |
| Q1 2013 | +3.4% | — | — | |
| Q4 2012 | +4.3% | — | — | |
| Q3 2012 | -1.1% | — | — | |
| Q2 2012 | +0.0% | — | — | |
| Q1 2012 | +5.3% | — | — | |
| Q4 2011 | +2.6% | — | — | |
| Q3 2011 | -2.9% | — | — | |
| Q2 2011 | -4.6% | — | — | |
| Q1 2011 | -3.0% | — | — | |
| Q4 2010 | +1.8% | — | — | |
| Q3 2010 | +0.0% | — | — | |
| Q2 2010 | +5.1% | — | — | |
| Q1 2010 | +5.9% | — | — |
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