Company: NEWTP
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001587987-25-000141
Chunk: 180

Company: NewtekOne, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 180
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 an exempt offering of $30.0 million aggregate principal amount of notes due 2030. The Notes will mature on April 1, 2030. The Notes bear interest at a rate of 8.375% per year, payable semiannually on April 1 and October 1 each year, commencing on October 1, 2025.

The increase in interest expense period over period is primarily due to the Company’s continued growth in deposits that increased interest expense by $2.5 million. In addition, there was additional interest expense on the 2027, 2029 8.50%, and 2029 8.625% Notes of $1.0 million, $1.1 million and $1.7 million, respectively. The increase was partially offset by a reduction in Notes payable - Securitization Trusts of $2.5 million, and the 2025 8.125% Notes of $1.1 million.

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Provision for Credit Losses

The provision for loan and lease credit losses represents the amount necessary to be charged against the current period’s earnings to maintain the ACL on loans at a level that the Company believes is appropriate in relation to the estimated losses inherent in the loan portfolio.

For the three months ended June 30, 2025 and 2024, there was a provision for loan credit losses of $9.1 million and $5.8 million, respectively. The increase was due to an increase in loans held for investment at amortized cost, specifically SBA 7(a) loans, as well as a sequential build of the provision year over year.

Net Interest Income and Margin

Average Balances and Yields. The following table presents information regarding average balances for assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amount of interest expense on average interest-bearing liabilities, and the resulting average yields and costs. The yields and costs for the periods indicated are derived by dividing the income or expense by the average balances for assets or liabilities, respectively, for the periods presented and annualizing that result. Loan fees are included in interest income on loans.

Three Months Ended June 30,20252024Average BalanceInterestAverage Yield / RateAverage BalanceInterestAverage Yield / RateInterest-earning assets:Other interest-earning assets$235,248 $2,950 5.03 %$171,932 $2,206 5.16 %Investment