Company: NEWTP
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001587987-25-000084
Chunk: 292

Company: NewtekOne, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 292
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 with respect to securitizations and loan principal and interest collected which 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:

Three Months Ended March 31, 2025Three Months EndedMarch 31, 2024Net cash used in operating activities$(60,704)$(38,674)Net cash used in investing activities(79,245)(43,805)Net cash provided by financing activities52,709 61,679 Net decrease in cash and restricted cash(87,240)(20,800)Cash and restricted cash—beginning of period (Note 2)381,374 184,006 Cash and restricted cash—end of period (Note 2)$294,134 $163,206 

During the three months ended March 31, 2025, operating activities used cash of $60.7 million, consisting primarily of $247.4 million of funding loans held for sale. This use of cash was offset by (i) $142.9 million of proceeds from the sale of loans; and (ii) $46.4 million from the payment of settlement receivables.

Cash used by investing activities was $79.2 million primarily comprised (i) $110.7 million in the net increase in loans held for investment, at cost; and (ii) $2.0 million in purchases of available-for-sale securities. These uses were partially offset by (i) a $17.7 million net decrease in loans held for investment, at fair value; and (ii) $12.0 million in maturities of available-for-sale securities.

Net cash provided by financing activities was $52.7 million consisting primarily of a (i) $85.2 million of borrowings on bank notes payable; and (ii) $30.0 million of net proceeds from the 2030 Notes.These sources of cash were offset by (i) $30.0 million maturity of the 2025 5.0% Notes; (ii) $16.0 million of principal payments related to securitization notes payable; (iii) $7.0 million net decrease in deposits; and (iv)