Company: NEWTP
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050582
Chunk: 245

Company: NewtekOne, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 245
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45,166)Total, at amortized cost, net$788,921 As of December 31, 2024Past Due and AccruingNon- accrualTotal Past Due and Non-accrualCurrentTotal Carried at Amortized Cost30-59 Days60-89 Days90+ DaysAt amortized costSBA$11,264 $9,046 $— $21,706 $42,016 $338,965 $380,981 CRE— — — 2,635 2,635 189,196 191,831 C&I275 — — — 275 47,283 47,558 Total, at amortized cost$11,539 $9,046 $— $24,341 $44,926 $575,444 $620,370 Deferred fees and costs1,281 Total, at amortized cost net of deferred fees and costs$621,651 Allowance for credit losses(30,233)Total, at amortized cost, net$591,418 

F-32

Credit Quality Indicators The Company uses internal loan reviews to assess the performance of individual loans. In addition, an independent review of the loan portfolio is performed annually by an external firm. The goal of the Company’s annual review of each borrower’s financial performance is to validate the adequacy of the risk grade assigned.The Company uses a grading system to rank the quality of each loan. The grade is periodically evaluated and adjusted as performance dictates. Loan grades 1 through 4 are passing grades and grade 5 is special mention. Collectively, grades 6 through 7 represent classified loans in Newtek Bank’s portfolio. The following guidelines govern the assignment of these risk grades:Exceptional (1 Rated): These loans are of the highest quality, with strong, well-documented sources of repayment. These loans will typically have multiple demonstrated sources of repayment with no significant identifiable risk to collection, exhibit well-qualified management, and have liquid financial statements relative to both direct and indirect obligations.Quality (2 Rated): These loans are of very high credit quality, with strong, well-documented sources of repayment. These loans exhibit very strong, well defined primary and secondary sources of repayment, with no significant identifiable risk of collection and have internally generated cash flow that more than adequately covers current maturities of long-term debt.Satisfactory (3 Rated): These loans exhibit satisfactory credit