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NewtekOne, Inc. (NASDAQ:NEWT), a national commercial bank currently trading at a modest P/E ratio of 5.25, disclosed leadership transitions in a recent SEC filing. According to InvestingPro analysis, the company appears undervalued despite maintaining strong dividend payments for 11 consecutive years. Effective immediately, Peter Downs has been appointed President of Newtek Bank, N.A., following Nicolas Young’s resignation as President and Chief Operating Officer effective May 16, 2025. Downs, who has been with the company since 2003 and has served on the board since 2014, brings extensive experience in small business lending.
Downs’ appointment comes with an employment agreement that includes an annual base salary of $750,000 along with standard executive benefits and indemnification provisions. Additionally, a change in control agreement is in place, offering severance pay under certain conditions.
In parallel, NewtekOne named Frank DeMaria as the company’s Chief Financial Officer, effective today. M. Scott Price will continue as the Bank’s CFO, focusing on financial strategy. DeMaria joined NewtekOne in 2023, previously holding executive finance roles at Flagstar Bank, N.A., and Amalgamated Financial Corp. His employment agreement provides for an annual base salary of $433,000 along with benefits and severance terms similar to Downs’.
Moreover, the company renewed the employment agreement with Michael A. Schwartz, Chief Legal Officer and Corporate Secretary, with an annual base compensation of $625,000.
These executive changes are part of NewtekOne’s ongoing efforts to strengthen its leadership team and enhance its operational capabilities. The terms of the new and renewed employment agreements will be detailed in the company’s next Quarterly Report on Form 10-Q.
This report is based on a press release statement from NewtekOne, Inc. and reflects the company’s current executive structure and compensation arrangements as reported to the SEC.
In other recent news, NewtekOne, Inc. reported its fourth-quarter 2024 earnings, surpassing market expectations with an earnings per share (EPS) of $0.69, compared to the forecasted $0.66. The company also reported a revenue of $75.37 million, exceeding the expected $68.14 million, highlighting its strong sales execution. In another development, NewtekOne successfully completed a $30 million exempt offering of 8.375% notes due 2030, with Egan-Jones Ratings Company upgrading the company’s credit rating from "BBB+" to "A-". This upgrade reflects the company’s robust financial metrics, including a strong tier 1 capital ratio and improved efficiency ratio.
Additionally, NewtekOne announced the retirement of Salvatore Mulia from its Board of Directors, leading to a reduction in board size and the appointment of Fernando Perez-Hickman to the Audit Committee. The company also made strategic leadership changes by appointing John O’Connor as the Chief Revenue Officer of its payment processing subsidiary, Newtek Merchant Solutions. This appointment is aimed at integrating merchant processing services with NewtekOne’s broader business offerings.
Furthermore, NewtekOne is shifting towards a predominantly remote workforce, terminating three office space leases, which will result in an annual cost reduction of approximately $2 million starting in the second quarter of 2025. The company has emphasized its commitment to leveraging technology for efficient client service and cost management. These developments reflect NewtekOne’s strategic focus on growth, efficiency, and enhancing its financial and operational structure.
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