Company: NEWTP
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001587987-25-000141
Chunk: 325

Company: NewtekOne, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 325
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 Costs

The increase in other general and administrative costs of $2.5 million is primarily due to the Acquisition, as in additional expense is included in the current year from the additional entities now being consolidated after the withdrawal of the BDC election, partially offset by the elimination of intercompany expenses between the newly consolidated entities and those previously reported as a BDC.

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Results of Segment Operations

The Company has four reportable segments Banking, Alternative Lending, NSBF, and Payments. A description of each segment and the methodologies used to measure financial performance is described in NOTE 18—SEGMENTS in the accompanying Notes to the Consolidated Financial Statements. Net income (loss) by operating segment is presented below:

Three Months Ended2025/2024 Increase/(Decrease)June 30, 2025June 30, 2024AmountPercentBanking$12,265 $12,453 $(188)(2)%Alternative Lending14,998 8,708 6,290 72 %Technology1— (259)259 (100)%NSBF(3,774)(6,250)2,476 (40)%Payments4,166 5,472 (1,306)(24)%Corporate & Other6,896 2,888 4,008 139 %Eliminations(20,848)(12,067)(8,781)73 %Consolidated net income$13,703 $10,945 $2,758 25 %

1    As a result of commitments made to the Federal Reserve, the Company divested of NTS on January 2, 2025, and is no longer a reportable segment. See NOTE 4—INVESTMENTS: Intelligent Protection Management Corp.

Banking 

The banking segment includes Newtek Bank as well as its consolidated subsidiary SBL. The financial results include the origination, sale, and servicing of SBA 7(a) loans, SBA 504 loans, C&I loans, CRE loans and ABL loans. In addition, Newtek Bank offers depository services. The results include $14.6 million of net interest income during the three months ended June 30, 2025 compared to $9.3 million of net interest income during the three months ended June 30, 2024. 

Alternative Lending

Alternative Lending includes Newtek ALP Holdings (NALH) and its subsidiaries. The Company has originated loans under its Alternative