Company: NEWTP
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001587987-25-000141
Chunk: 34

Company: NewtekOne, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 graded Substandard are inadequately protected by current sound net worth, paying capacity of the obligor, or pledged collateral. Loans classified as Substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. These loans are consistently not meeting the repayment schedule.Doubtful (7 Rated): Loans graded Doubtful have all the weaknesses inherent in those classified as Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. The ability of the borrower to service the debt is extremely weak, overdue status is constant, the debt has been placed on non-accrual status, and no definite repayment schedule exists. Once the loss position is determined, the amount is charged off.Loss (8 Rated): Loss rated loans are considered uncollectible and of such little value that their continuance as assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this credit even though partial recovery may be affected in the future.The following tables present asset quality indicators by portfolio class and origination year at June 30, 2025 and December 31, 2024: June 30, 2025Term Loans HFI by Origination Year20252024202320222021PriorTotalSBA, at fair valueRisk Grades 1-4$— $— $21,135 $96,073 $33,388 $102,123 $252,719 Risk Grades 5-6— — 3,416 19,888 7,314 42,575 73,193 Risk Grade 7— — — — — — — Risk Grade 8— — 22 141 — 38 201 Total$— $— $24,573 $116,102 $40,702 $144,736 $326,113 SBA, at amortized cost, net of deferred fees and costsRisk Grades 1-4$104,390 $202,686 $92,141 $— $— $— $399,217 Risk Grades 5-6317 23,828 32,