Newtek Business Services Corp. Reports Third Quarter 2016 Financial Results

Achieves Record Loan Fundings of $85.9 Million for Third Quarter

Forecasts 2017 Annual Cash Dividend of $1.57 per Share

NEW YORK, Nov. 02, 2016 (GLOBE NEWSWIRE) -- November 2, 2016 - Newtek Business Services Corp. ("Newtek" or the "Company"), (NASDAQ: NEWT), an internally managed business development company ("BDC"), announced today its financial results for the quarter ended September 30, 2016.  

Third Quarter 2016 Highlights:
  • Net asset value ("NAV") of $208.2 million, or $14.26 per share, at September 30, 2016; an increase of  1.9% over NAV of  $204.4 million, or $14.11 per share, at June 30, 2016 and an increase of 2.1% over NAV of $203.9 million, or $14.06 per share, at December 31, 2015.
  • Total investment income of $7.9 million; an 11.6% increase over $7.0 million for the quarter ended September 30, 2015.
  • Total investment portfolio increased by 22.5% to $326.9 million at September 30, 2016, from $266.9 million at December 31, 2015.
  • Net investment loss of $(2.1) million, or $(0.15) per share, compared to $(1.5) million, or $(0.14) per share, for the three months ended September 30, 2015.
  • Adjusted net investment income 1 of $6.7 million, or $0.46 per share; a 31.4% increase over $5.1 million, or $0.49 per share, for the three months ended September 30, 2015.
  • Debt-to-equity ratio was approximately 85.3% at September 30, 2016.

Loan Funding Highlights:
  • Funded $85.9 million of SBA 7(a) loans in the third quarter of 2016; an increase of a 33.7% over the same period one year ago.
  • For the nine months ended September 30, 2016, SBA 7(a) loan fundings increased by 29.8% to $217.8 million compared to $167.8 million for the same period one year ago.
  • Reaffirmed 2016 loan funding forecast of approximately $320 million in SBA 7(a) and SBA 504 loans (note: SBA 504 loans are funded by Newtek Business Credit Solutions ("NBC"), one of Newtek's controlled portfolio companies), which would represent an approximate 32% increase over 2015.
  • As of October 31, 2016, there were approximately $20 million of SBA 504 loans in the pipeline.

2016 and 2017 Dividend Forecast and Payments:
  • Paid third quarter 2016 dividend of  $0.43 2 per share, on September 30, 2016 to shareholders of record as of September 20, 2016.
  • Reaffirmed 2016 annual cash dividend forecast of approximately $22.2 million, or 1.53 2 per share.
  • The Company forecasts paying an annual cash dividend of $1.57 2 per share in 2017, a 2.6% increase over the 2016 annual dividend forecast of $1.53 per share.

Barry Sloane, Chairman, President and Chief Executive Officer said, "We are thrilled that our third quarter 2016 results continue to reflect positive trends in our business.  Additionally, we are proud of the progress we have made through the first nine months of 2016 and believe we will continue on this growth trajectory for the remainder of 2016 and in 2017.  That said, we are pleased to issue our 2017 annual dividend forecast of $1.57 per share, which represents an approximate 2.6% increase over our 2016 annual dividend forecast of $1.53 per share.  In addition, we experienced growth in our NAV to $208 million, or $14.26 per share, at September 30, 2016 which represents a 1.9% increase over our NAV at June 30, 2016 and a 2.1% increase over our NAV at December 31, 2015."

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