Company: NEWTP
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050582
Chunk: 104

Company: NewtekOne, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 104
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In response to market conditions and consistent with its business plan, Newtek Bank has been focused on increasing its liquidity position by raising additional deposits and maintaining a significant portion of its liquidity in the form of cash held at the Federal Reserve, approximately $187.7 million as of September 30, 2025, as opposed to long-term investments. In addition, Newtek Bank management continues to closely monitor market conditions with a focus on its asset liability management policies, as well as closely monitoring, among other things, capital levels, to ensure compliance with regulatory guidelines and the OCC Operating Agreement. The increase in the average balance of loans HFS was attributable to originations of SBA 504, SBA 7(a) and ALP loans, and the increase in the average outstanding accrual loan portfolio resulted from the origination of new SBA 7(a) loans period over period.

78

Rate/Volume Analysis

The following table sets forth the effects of changing rates and volumes on net interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The total column represents the sum of the prior columns. For purposes of this table, increases or decreases attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on the changes due to rate and the changes due to volume.

Nine Months Ended September 30,2025 vs. 2024Increase (Decrease) Due toRateVolumeTotalInterest income:Other interest-earning assets$(2,074)$4,496 $2,422 Investment securities1 (479)(478)Loans held for sale(3,541)17,146 13,605 Loans held for investment(4,383)14,645 10,262 Total interest income(9,997)35,808 25,811 Interest expense:Demand(158)664 506 Savings and NOW(1,971)5,777 3,806 Money Market(91)884 793 Time(728)5,949 5,221 Borrowings(1,076)3,169 2,093 Total interest expense(4,024)16,443 12,419 Net interest income$(5,973)$19,365 $13,392 

 Noninterest Income

Nine