Company: NEWTP
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001587987-25-000084
Chunk: 273

Company: NewtekOne, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 273
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,523 12,585 7.95 Total interest-bearing liabilities1,680,492 23,957 5.78 1,101,872 18,161 6.63 Noninterest-bearing deposits— 202 Noninterest-bearing liabilities118,525 61,649 Shareholders’ equity299,308 237,831 Total liabilities and shareholders' equity$2,098,325 $1,401,554 Net interest income and interest rate spread$13,933 2.48 %$8,906 2.25 %Net interest margin3.04 %2.92 %Ratio of average interest-earning assets to average interest bearing liabilities110.70 %111.23 %

In response to market conditions and consistent with its business plan, Newtek Bank has been focused on increasing its liquidity position by raising additional deposits and maintaining a significant portion of its liquidity in the form of cash held at the Federal Reserve, approximately $259.3 million as of March 31, 2025, as opposed to long-term investments. In addition, Newtek Bank management continues to closely monitor market conditions with a focus on its asset liability management policies, as well as closely monitoring, among other things, capital levels, to ensure compliance with regulatory guidelines and the OCC Operating Agreement. The increase in the average balance of loans HFS was attributable to originations of SBA 504, SBA 7(a) and ALP loans, and the increase in the average outstanding accrual loan portfolio resulted from the origination of new SBA 7(a) loans period over period.

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Rate/Volume Analysis

The following table sets forth the effects of changing rates and volumes on net interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. For purposes of this table, increases or decreases attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on the changes due to rate and the changes due to volume.

Three Months Ended March 31,2025 vs. 2024Increase (Decrease) Due toRateVolumeTotalInterest income:Interest-earning balances in other banks$(578)$2,087 $1,509 Investment securities(3)(184)(187)Loans held for sale(