Company: NEWTP
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001587987-25-000050
Chunk: 21

Company: NewtekOne, Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 7
Chunk 21
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, the sensitivity analysis shocks each significant assumption individually, while keeping all other assumptions unchanged. In practice, changes in one assumption generally impact other assumptions, which could increase or lessen the effect of the change. 

82

Servicing Income

The increase in servicing income was related to an increase of $167.6 million in the average total loan portfolio for which we earn servicing income period over period.

Net Gains on Sales of Loans

Net gains on sales of loans for the year ended December 31, 2024 and 2023 were as follows:

 Year Ended December 31, 2024December 31, 2023$ Amount$ AmountGains recognized on sales of loans$100,422 $75,350 Losses recognized on sales of loans(3,239)(23,883)Net gains on sales of loans$97,183 $51,467 

 Year Ended December 31, 2024December 31, 2023# of Loans$ Amount# of Loans$ AmountSBA 7(a) loans originated2,427 $943,024 1,812 $814,406 SBA 7(a) guaranteed loans sold2,041 694,750 1,723 607,560 Average sale price as a percent of principal balance1110.97 %110.20 %

1 Realized gains greater than 110.00% must be split 50/50 with the SBA in accordance with SBA regulations. The realized gains recognized above reflect amounts net of split with the SBA.

For the year ended December 31, 2024, the average sale price on SBA 7(a) loans as a percent of principal balance was 110.97% compared to 110.20% for the prior period. The increase in sales prices in 2024 resulted from higher demand. The increase in overall net gains on sales of loans resulted from higher volumes of sales compared to the prior year at better market premiums than the prior year and the expectation of lower interest rates which would slow prepay speeds.

The table below provides selected statistics on the historical net premiums on sales of guaranteed portions of SBA 7(a) loans realized by NewtekOne:

SBA 7(a) Sales Price as Percent of Principal Balance (%)AverageHighLowMedian2022109.71 %115.77 %106.11 %110.16 %2023110