Company: NEWTP
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050582
Chunk: 207

Company: NewtekOne, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 207
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 are due to loan participants. In addition, the Company has funded a $10.0 million account at Newtek Bank to fund certain of NSBF’s potential obligations to the SBA pursuant to the Wind-down Agreement. of which the Company is a guarantor. The majority of the Company’s remaining restricted cash is held by the parent company.

The Company generated and used cash as follows:

Nine Months Ended September 30,20252024Net cash used in operating activities$(427,836)$(61,419)Net cash used in investing activities(193,876)(122,833)Net cash provided by financing activities457,269 192,132 Net (decrease) increase in cash and restricted cash(164,443)7,880 Cash and restricted cash—beginning of period (NOTE 2)381,374 184,006 Deconsolidation of cash and restricted cash from controlled investments related to business dispositions— (1,464)Cash and restricted cash—end of period (NOTE 2)$216,931 $190,422 

During the nine months ended September 30, 2025, operating activities used cash of $427.8 million, consisting primarily of $778.0 million of funding loans held for sale. This use of cash was partially offset by (i) $310.2 million of proceeds from the sale of loans; and (ii) $52.0 million from the payment of settlement receivables.

Cash used by investing activities was $193.9 million primarily comprised (i) $242.8 million in the net increase in loans held for investment, at cost; (ii) $15.8 million in contributions to joint ventures and other non-control investments; and (iii) $11.6 million in purchases of available-for-sale securities. These uses were partially offset by (i) a $53.9 million principal received on loans held for investment, at fair value; and (ii) $18.0 million in maturities of available-for-sale securities.

Net cash provided by financing activities was $457.3 million consisting primarily of a (i) $390.2 million of borrowings on bank notes payable; (ii) $204.4 million net increase in deposits; (iii) $48.2 million of proceeds from preferred stock, net of offering costs; and (iv) $30.0 million of proceeds from the 2030 Notes. These sources of cash were partially offset by (i