Company: NEWTP
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001587987-25-000141
Chunk: 313

Company: NewtekOne, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 313
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 the prior year.

Other General and Administrative Costs

The increase in other general and administrative costs of $4.9 million is primarily due to the Acquisition, as in additional expense is included in the current year from the additional entities now being consolidated after the withdrawal of the BDC election, partially offset by the elimination of intercompany expenses between the newly consolidated entities and those previously reported as a BDC.

80

Results of Segment Operations

The Company has four reportable segments Banking, Alternative Lending, NSBF, and Payments. A description of each segment and the methodologies used to measure financial performance is described in NOTE 18—SEGMENTS in the accompanying Notes to the Consolidated Financial Statements. Net income (loss) by operating segment is presented below:

Six Months Ended2025/2024 Increase/(Decrease)June 30, 2025June 30, 2024AmountPercentBanking$18,292 $21,854 $(3,562)(16)%Alternative Lending38,127 17,770 20,357 115 %Technology1— (152)152 (100)%NSBF(8,728)(7,170)(1,558)22 %Payments8,344 8,868 (524)(6)%Corporate & Other11,670 (1,022)12,692 (1242)%Eliminations(44,635)(19,553)(25,082)128 %Consolidated net income$23,070 $20,595 $2,475 12 %

1     As a result of commitments made to the Federal Reserve, the Company divested of NTS on January 2, 2025, and is no longer a reportable segment. See NOTE 4—INVESTMENTS: Intelligent Protection Management Corp.

Banking

The banking segment includes Newtek Bank as well as its consolidated subsidiary SBL. The financial results include the origination, sale, and servicing of SBA 7(a) loans, SBA 504 loans, C&I loans, CRE loans and ABL loans. In addition, Newtek Bank offers depository services. The results include $27.3 million of net interest income during the six months ended June 30, 2025 compared to $17.0 million of net interest income during the six months ended June 30, 2024. During 2025, the Company increased the provision for credit losses, resulting in lower net income