Newtek Bank

What Newtek Bank does

Newtek Bank, N.A. is a nationally chartered FDIC-insured commercial bank headquartered in Miami, Florida, operating as a wholly-owned subsidiary of NewtekOne, Inc. (NASDAQ: NEWT). Originally founded in 1963 as National Bank of New York City (NBNYC) and acquired by NewtekOne on January 6, 2023, the bank was rebranded Newtek Bank and repositioned as the deposit-taking and lending arm of the NewtekOne fintech ecosystem serving small and mid-sized businesses. As of Q1 2026, the bank reported total assets of $2.9 billion, deposits above $2 billion, a loan portfolio of $1.26 billion, and more than 37,000 deposit accounts that doubled year-over-year.

The bank's product set centers on zero-fee business banking with a 4.00% APY on business checking and savings, SBA and commercial & industrial (C&I) lending, certificates of deposit, and personal savings products. In May 2026, Newtek Bank launched FedNow and Real-Time Payments (RTP) integration for business customers, establishing dedicated payments infrastructure supported by a Chief Real-Time Payments Officer. The bank distributes through the Newtek Advantage platform, which bundles deposits with payments, payroll, insurance, and lending solutions for SMB clients, leveraging the parent company's existing customer base and broker relationships.

Newtek Bank generates revenue primarily through net interest income on its loan and securities portfolio, supplemented by non-interest income ($3.5 million in Q1 2026) from payments, service fees, and the broader NewtekOne ecosystem. Q1 2026 net income of $8.9 million and EPS of $0.43 (up 1,923% year-over-year) reflect rapid deposit and loan growth following the deposit-funded balance sheet restructuring, including the payoff of $185 million in credit facilities and a C&I loan securitization executed in early 2026.

Name

Newtek Bank

Legal name

NewtekOne, Inc.

Website

https://newtekbank.com

Company type

Public

Founded year

1963

Operating status

Operating

Headcount range

51–100 employees

Short description

Newtek Bank is a nationally chartered, FDIC-insured commercial bank and subsidiary of NASDAQ-listed NewtekOne (NEWT), providing zero-fee deposit accounts, SBA and commercial lending, and integrated fintech services to small and mid-sized businesses via the Newtek Advantage platform.

Ownership category

akta.pro rank

Product category

Commercial Banking

NAICS

Commercial Banking (522110), Depository Credit Intermediation (5221)

SIC

National Commercial Banks (6021)

akta.pro primary industry

Small Business Banking (Microbusiness/Sole Proprietor) (FSABAAAI)

akta.pro secondary industries

SBA/Government-Backed & Development Finance Loans (FSAKAGAI), Mass-Market Consumer Deposit Banking (Checking/Savings) (FSABAAAA)

Keywords

• Business banking
• Commercial lending
• SBA loans
• High-yield savings
• Real-time payments

Headquarters

HQ city

Miami

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Net Interest Income: Interest income generated from the loan portfolio including commercial real estate loans, SBA loans, and general business lending. Interest is earned on outstanding loan balances with rates based on creditworthiness and loan type.
2. Non-Interest Income: Fee income from deposit accounts, transaction processing, and other banking services. Includes income from SBA loan sales and securitization activities.
3. SBA Loan Origination and Sales: Revenue from originating and selling government-guaranteed SBA loans, generating gains on sale and ongoing servicing income.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels4 records

Core offering

Newtek Bank is a branchless commercial bank that provides zero-fee business deposit accounts (checking, money market, CDs), SBA and commercial real estate lending, and personal high-yield savings and CDs. Banking is delivered through the proprietary Newtek Advantage digital platform and mobile app, with FedNow and RTP integrated for 24/7/365 real-time payments to small and mid-sized business customers in the United States.

Differentiator

Problem solved

Functional benefit

Brands

• Newtek Advantage: Digital dashboard platform providing integrated access to business banking, payroll, lending, merchant processing, and analytics for small businesses.
• Zero-Fee Business Banking
• Newtek Real-Time Payment Solutions

Products and services

• Business Checking Account Zero-fee business checking account designed for small and mid-sized businesses with high APY, free unlimited transactions, free ACH/wires, no monthly maintenance or overdraft fees, FDIC insurance, and exclusive MoneyPass ATM access. Targeted at independent business owners.
• Business Money Market Account Business money market account earning 3.50% APY with no service charges or monthly fees, providing small businesses with a high-yield sweep option for operating reserves.
• Business Certificate of Deposit (CD) Business CDs offered in more than 7 different term options with competitive fixed rates (e.g., 4.00% APY on the 6-month CD), providing businesses with insured, fixed-return deposit options.
• Business Lending (SBA Loans, CRE Loans, Lines of Credit) Commercial lending suite including SBA government-guaranteed loans, commercial real estate loans, and business lines of credit. Loans range from $5,000 to $15 million with fully amortizing 10-25 year terms, no balloon payments, and no standard covenants. Targeted at small and mid-sized commercial businesses, with over $8.55 billion in SBA loans originated historically.
• Personal High Yield Savings Personal high-yield savings account earning 4.20% APY (claimed to be 11x the national average), FDIC-insured, designed for individual consumers seeking competitive returns on personal savings.
• Personal Certificate of Deposit (CD) Personal CDs offered in more than 7 different term options with competitive fixed rates (e.g., 4.00% APY for 6 months, 4.10% APY for 9 months), FDIC-insured, for individual consumers seeking insured fixed-income deposits.
• Newtek Bank Business Visa Debit Card Business Visa debit card provided free to Business Checking account holders, providing access to over 40,000 surcharge-free MoneyPass ATMs nationwide plus cash-back savings through Visa SavingsEdge on qualified business purchases.

Quantifiable outcome

• 37,000+ deposit accounts served
• +2 more outcomes

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration7 records

Feature4 records

Partnerships

Eight partnerships are on record, tiered core and minor.

• National Bank of New York City (NBNYC)coreStrategic or Co-development PartnerAcquired by Newtek and operating as a division of Newtek Bank, expanding the bank's presence and deposit base in the New York metropolitan area.
• MoneyPasscoreTechnology or IntegrationSurcharge-free ATM network partnership providing Newtek Bank customers access to MoneyPass ATM locations nationwide without additional withdrawal fees.
• Visa SavingsEdgeminorGTM or Marketing PartnerDebit card rewards program offering cash-back savings on qualified purchases. Earns money back on everyday business spending when using the Newtek Visa Business Debit Card.
• ApiturecoreTechnology or IntegrationTechnology provider powering Newtek Bank's mobile banking application and digital banking infrastructure, enabling mobile account access, deposits, and real-time notifications.
• The Clearing House (RTP Network)coreTechnology or IntegrationReal-Time Payments network membership enabling Newtek Bank to offer instant payment services to customers for 24/7/365 real-time fund transfers.
• Federal Reserve (FedNow Service)coreTechnology or IntegrationFedNow instant payment service participant enabling Newtek Bank customers to send and receive instant payments with immediate settlement through the Federal Reserve's infrastructure.
• Newtek Merchant Solutions, LLCminorChannel Partner/ Reseller/ DistributorAffiliate company providing merchant processing and payment acceptance services to Newtek Bank business customers.
• PMTWorks Payroll, LLC d/b/a Newtek Payroll & Benefits SolutionsminorChannel Partner/ Reseller/ DistributorAffiliate company providing payroll processing and employee benefits administration services to Newtek Bank small business customers.

Scale indicators9 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Relay Financial: Relay is a digital business banking and money management platform offering fee-free business checking, savings, and expense management for SMBs. It is comparable to Newtek in serving small businesses with a digital-first, no-fee model and integrated treasury tools.
• Mercury: Mercury provides digital business banking, treasury, and credit products to startups and small businesses. Like Newtek, it competes on a high-yield, low-fee deposit proposition combined with integrated digital tooling, though Mercury focuses on venture-backed startups whereas Newtek targets Main Street SMBs.
• Live Oak Bank: Live Oak Bank is a publicly traded, technology-enabled commercial bank specializing in SBA lending to small businesses nationwide. It is the most direct peer to Newtek Bank given the shared focus on government-guaranteed SBA origination, digital-first SMB deposit gathering, and similar deposit-funded growth strategy.
• Bluevine Capital: Bluevine is a digital-first business banking platform offering high-yield business checking, lines of credit, and bill pay to SMBs. It directly competes with Newtek's Zero-Fee Business Banking model targeting small businesses that are underserved by traditional banks, with a comparable deposit-pricing and digital UX proposition.
• Piermont Bank: Piermont Bank is a New York-based digital commercial bank offering SBA lending, business deposits, and treasury management to small and mid-sized businesses. It is a close comparable to Newtek given its SBA lending focus, commercial deposit gathering, and digital delivery model.
• Grasshopper Bank: Grasshopper Bank is a digital-focused commercial bank serving small businesses, fintechs, and entrepreneurs with business checking, lending, and treasury products. It competes with Newtek in the digital SMB banking space and offers similar integrated technology-forward service.
• First Internet Bank: First Internet Bank is a digital-only commercial and consumer bank offering deposit accounts, SBA lending, and business banking products online. It is comparable to Newtek as a branchless digital bank with SBA lending capability and competitive deposit rates targeting national SMB and consumer customers.

Broad incumbents

• LendingClub: LendingClub operates a national digital banking platform with deposit products, consumer and small business loans, and an established marketplace lending heritage. It is a broad incumbent competing with Newtek on high-yield digital deposits and SMB credit, though at significantly larger scale.
• Citizens Financial Group: Citizens is a large regional commercial bank with significant middle-market and small business banking, SBA lending, and treasury management capabilities. It serves as a broad incumbent benchmark for the SMB and SBA lending segment in which Newtek competes, particularly on commercial deposit products.

Emerging players

• Coastal Community Bank: Coastal Community Bank is a Washington state community bank that powers embedded-banking and fintech partnerships, including Pipe. It overlaps with Newtek's digital SMB focus through its technology-forward partner-bank model and deposit gathering for niche SMB verticals.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/newtek-bank

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Subsidiaries9 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Newtek Bank