Company: NEWTP
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001587987-25-000084
Chunk: 278

Company: NewtekOne, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 278
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 joint ventures and other non-control investments for the three months ended March 31, 2025 compared to none in the prior period.

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Non-Interest Expense

Three months ended March 31,2025/2024 Increase/(Decrease)20252024AmountPercentSalaries and employee benefits expense$21,316 $20,506 $810 4.0 %Technology services expense— 3,408 (3,408)(100.0)Electronic payment processing expense4,447 4,846 (399)(8.2)Professional services expense3,435 4,565 (1,130)(24.8)Other loan origination and maintenance expense4,417 2,244 2,173 96.8 Depreciation and amortization146 532 (386)(72.6)Other general and administrative costs7,416 5,058 2,358 46.6 Total noninterest expense$41,177 $41,159 $18 — %

Salaries and Employee Benefits Expense

The increase in salaries and employee benefits was primarily attributable to increased benefits costs, primarily bonus accruals, higher medical and other insurance costs.

Technology Services Expense 

The $3.4 million decrease in technology services expenses for the three months ended March 31, 2025 corresponded with the NTS Sale. Refer to NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION: Sale of NTS.

Professional Services Expense

The decrease in professional services expense period over period is primarily attributable to costs associated with the NTS disposition that occurred on January 2, 2025. Refer to NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION: Sale of NTS.

Other Loan Origination and Maintenance Expense

Other loan origination and maintenance expenses during the three months ended March 31, 2025, was $4.4 million compared to $2.2 million for the three months ended March 31, 2024 due to a larger dollar volume and count of loan originations in 2025 compared to 2024. 

Depreciation and Amortization

The decrease in depreciation and amortization period over period is primarily attributable to the full amortization of intangible assets during the second half of 2024, which resulted in less amortization in 2025 compared to the prior year.

70

Results of Segment Operations

The Company has four reportable segments Banking,