Company: NEWTP
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001587987-25-000084
Chunk: 197

Company: NewtekOne, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 197
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 detailed description of our accounting policies is included in the Company’s 2024 Form 10-K, which accounting policies remain significantly unchanged. There have been no other significant changes to our accounting policies, or the estimates made pursuant to those policies as described in our 2024 Form 10-K. 

Cash and due from banksThe Company considers all highly liquid instruments with maturities of three months or less when purchased to be cash equivalents. Invested cash is held exclusively at financial institutions of high credit quality. As of March 31, 2025, cash deposits in excess of insured amounts totaled $41.0 million. The Company has not experienced any losses with respect to cash balances in excess of insured amounts and management does not believe there was a significant concentration of risk with respect to cash balances as of March 31, 2025.

Restricted cashRestricted cash includes amounts due on SBA loan-related remittances to third parties, cash reserves established as part of agreements with the SBA, cash reserves associated with consolidated securitization transactions, and cash margin as collateral for derivative instruments. 

Interest bearing deposits in banksThe Company’s interest bearing deposits in banks reflects cash held at other financial institutions that earn interest. 

The following table provides a reconciliation of cash, restricted cash, and interest bearing deposits in banks as of March 31, 2025 and 2024 and December 31, 2024:March 31, 2025March 31, 2024December 31, 2024Cash and due from banks$10,201 $12,295 $6,941 Restricted cash24,151 35,759 28,226 Interest bearing deposits in banks259,782 115,152 346,207 Cash and restricted cash$294,134 $163,206 $381,374 March 31, 2025March 31, 2024December 31, 2024Cash held at Federal Reserve Bank1$259,343 $115,137 $345,680 Cash held at other financial institutions34,791 48,069 35,694 Total cash and cash equivalents$294,134 $163,206 $381,374 1 Subject to changes in the Federal Funds rate set by the Federal Open Market Committee

Allowance for Credit Losses – LoansAccounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326