Form 4: NewtekOne CFO Receives Restricted Stock Award

NewtekOne's Chief Financial Officer, Frank M. DeMaria, was granted 1,556 restricted shares of common stock valued at $13.91 per share, vesting over two years.

Summary

• Frank M. DeMaria, Chief Financial Officer of NewtekOne, Inc. (NEWT), received a restricted stock award.
• The award consists of 1,556 shares of common stock.
• The transaction occurred on January 14, 2026, with a reported price of $13.91 per share.
• The shares were granted under the Shareholder and Board approved NewtekOne, Inc. 2023 Stock Incentive Plan.
• The shares will vest 100% after twenty-four (24) months.
• Dividends in the form of common stock will be paid during the restricted period and will vest according to the same schedule.
• Following this transaction, Mr. DeMaria beneficially owns 35,220 shares of common stock.

Sentiment

Score: 6

Explanation: The filing reports a routine executive compensation event (restricted stock grant). While not directly impacting operational performance, it positively aligns management's interests with shareholders through equity ownership, which is generally viewed favorably.

Positives

• Aligns the Chief Financial Officer's interests with those of shareholders through equity ownership.
• Demonstrates the company's use of its 2023 Stock Incentive Plan to incentivize key management.
• The vesting schedule encourages long-term commitment from the executive.

Negatives

• No immediate negatives identified from this routine compensation filing.

Risks

• The value of the restricted stock award is subject to the future market price fluctuations of NewtekOne, Inc. common stock.
• The shares are subject to a 24-month vesting period, meaning the reporting person does not have full ownership or liquidity until the vesting conditions are met.
• Failure to meet employment or other conditions could result in forfeiture of unvested shares.

Future Outlook

The filing indicates a future vesting event for the granted restricted shares on January 14, 2028, assuming continued employment and satisfaction of vesting conditions. Dividends on these shares will also vest according to the same schedule.

Industry Context

The grant of restricted stock to a Chief Financial Officer is a common practice in publicly traded companies across various industries. It serves as a key component of executive compensation packages, aiming to align executive incentives with long-term shareholder value creation.

Comparison to Industry Standards

• Equity compensation, particularly restricted stock units (RSUs) or restricted stock awards (RSAs) with multi-year vesting, is a standard component of executive compensation packages in U.S. public companies.
• The 24-month vesting period is within typical industry ranges, which often vary from 2 to 5 years, promoting executive retention and long-term performance focus.
• The practice of paying dividends on restricted shares, which then vest with the underlying shares, is also a common feature in such plans, further incentivizing executives.

Corporate Governance

Stakeholder Impact

• Shareholders: The grant aligns the CFO's financial interests with shareholder value creation, as the value of his compensation is tied to the company's stock performance. It also dilutes existing shares slightly over time as shares vest, but this is typically accounted for in incentive plans.
• Employees: May signal a commitment to retaining key talent and a structured approach to executive compensation.

Next Steps

• The 1,556 restricted shares granted to Frank M. DeMaria are scheduled to vest 100% after 24 months from the grant date, on January 14, 2028.
• Dividends paid on these restricted shares will also vest according to the same schedule.

Key Dates

Keywords

NewtekOne, NEWT, Form 4, Insider Transaction, Restricted Stock Award, Equity Compensation, CFO, Executive Compensation, Stock Incentive Plan