Company: NEWTP
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001587987-25-000050
Chunk: 19

Company: NewtekOne, Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 7
Chunk 19
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 in other banks$466 $(276)$190 Investment securities(31)(5)(36)Loans held for sale(7,010)16,617 9,607 Loans held for investment2,926 14,358 17,284 Total interest income(3,649)30,694 27,045 Interest expense:Demand390 40 430 Savings and NOW(4,190)10,805 6,615 Money Market(259)348 89 Time2,144 3,562 5,706 Borrowings3,106 (2,572)534 Total interest expense1,191 12,183 13,374 Net interest income$(4,840)$18,511 $13,671 

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 year ended December 31, 2024 and 2023, there was a provision for credit losses of $26.2 million and $11.7 million, respectively. The increase was due to increases in net charge-offs, specific reserves on impaired loans, and balances of loans held for investment at amortized cost, across all products but specifically SBA 7(a) loans.

81

Noninterest Income

Year ended December 31,2024/2023 Increase/(Decrease)20242023AmountPercentDividend income$1,519 $1,757 $(238)(13.5)%Net loss on loan servicing assets(12,665)(4,282)(8,383)195.8 Servicing income20,087 18,289 1,798 9.8 Net gains on sales of loans97,183 51,467 45,716 88.8 Net gain (loss) on loans under the fair value option5,200 18,008 (12,808)(71.1)Technology and IT support income19,643 24,916 (5,273)(21.2)Electronic payment processing income46,049 42,855 3,194 7.5 Other noninterest income40,296 23,762 16,534 69.6   Total noninterest income$217