Company: NEWTP
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001587987-25-000141
Chunk: 232

Company: NewtekOne, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 232
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 decision maker over the activities that most significantly impact the economic performance of the 2025-1 Trust. Consequently the Company is not required to consolidate the 2025-1 Trust. The Company’s beneficial interest in the 2025-1 Trust is evidenced by sole ownership of the Ownership Certificate and its beneficial interest in the credit risk of the securitized ALP Loans. Newtek ALP Holdings, the sponsor of the Securitization Trust, is a wholly owned subsidiary of the Company, therefore the Company effectively owns 100% of the equity interest in the 2025-1Trust. The Company’s continuing involvement with and exposure to loss from the VIEs includes the carrying value of the retained interest, the servicing asset recognized in the sale of the loans, servicing advances in the role as servicer, and obligations under representations and warranties contained in the loan sale agreements. Creditors of the 2025-1 Trust have no recourse to the Company’s assets or general credit. The underlying performance of the ALP loans transferred to the Trust has a direct impact on the fair values and cash flows of the beneficial interests held and the servicing asset recognized.

F-24

The Company’s investments in the unconsolidated 2025-1 Trust is accounted for using the fair value option under ASC 825, with changes in fair value recognized in earnings each reporting period, and is classified in Residuals in securitizations, at fair value in the Company’s consolidated statements of financial condition, and consisted of the following:June 30, 2025Carrying ValueMaximum Exposure to LossTotal Assets in VIEAssetsLiabilitiesTransfer of loans - sale treatmentRetained interests$77,701 $— $77,701 $213,307 

NOTE 4—INVESTMENTS:Investments consisted of the following at:June 30, 2025December 31, 2024CostFair ValueCostFair ValueResiduals in securitizations, at fair value (NOTE 3)$32,481 $77,701 $— $— Joint ventures and other non-control investments, at fair value54,493 68,121 44,039 57,678 Debt securities available-for-sale, at fair value14,237 14,245 23,934 23,916 Federal Home Loan Bank and Federal Reserve Bank stock3,937 3,937 3,585 3,585 Total investments$105