Company: NEWTP
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050582
Chunk: 222

Company: NewtekOne, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 222
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 SBA loan-related remittances to third parties, cash reserves established as part of agreements with the SBA, cash reserves associated with consolidated securitization transactions, and cash margin as collateral for derivative instruments. 

Interest bearing deposits in banksThe Company’s interest bearing deposits in banks reflects cash held at other financial institutions that earn interest. 

The following table provides a reconciliation of cash, restricted cash, and interest bearing deposits in banks as of September 30, 2025 and 2024 and December 31, 2024:September 30, 2025December 31, 2024September 30, 2024Cash and due from banks$3,980 $6,941 $9,688 Restricted cash24,737 28,226 27,929 Interest bearing deposits in banks188,214 346,207 152,805 Cash and restricted cash$216,931 $381,374 $190,422 September 30, 2025December 31, 2024September 30, 2024Cash held at Federal Reserve Bank1$187,731 $345,680 $152,283 Cash held at other financial institutions29,200 35,694 38,139 Total cash and cash equivalents$216,931 $381,374 $190,422 1 Subject to changes in the Federal Funds rate set by the Federal Open Market Committee

Transfers and Servicing of Financial AssetsFor a transfer of financial assets to be considered a sale, the transfer must meet the sale criteria of ASC 860, which, at the time of the transfer, requires that the transferred assets qualify as recognized financial assets and the Company surrender control over the assets. Such surrender requires that the assets be isolated from the Company, even in bankruptcy or other receivership, the purchaser have the right to pledge or sell the assets transferred and the Company not have an option or obligation to reacquire the assets. Assets related to transactions that do not meet ASC Topic 860 — Transfers and Servicing (“ASC Topic 860”) requirements for accounting sale treatment are reflected in the Company’s consolidated statements of financial condition as investments and the sale proceeds are recognized as a liability.

F-19

The Company accounts for servicing assets in accordance with ASC Topic 860-50 - Transfers and Servicing - Servicing Assets and Liabilities. The Company and Newtek Bank earn servicing fees from the guaranteed portions of SBA 7