Company: NEWTP
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001587987-25-000084
Chunk: 29

Company: NewtekOne, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 29
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 NTS), partially offset by a $9.5 million increase of interest income on loans. Below is a summary of changes in the components of Net income:

Three Months Ended March 31,20252024ChangeNet interest income after provision for credit losses$428 $4,891 $(4,463)Noninterest income52,398 49,367 3,031 Noninterest expense41,177 41,159 18 Net income before taxes11,649 13,099 (1,450)Income tax expense2,282 3,449 (1,167)Net income$9,367 $9,650 $(283)

Net Interest Income

Three Months Ended March 31,20252024ChangeInterest incomeDebt securities available-for-sale$276 $460 $(184)Loans and fees on loans34,483 24,985 9,498 Other interest earning assets3,131 1,622 1,509 Total interest income37,890 27,067 10,823 Interest expenseDeposits9,845 5,576 4,269 Notes and securitizations10,974 10,827 147 Bank and FHLB borrowings3,138 1,758 1,380 Total interest expense23,957 18,161 5,796 Net interest income13,933 8,906 5,027 Provision for credit losses13,505 4,015 9,490 Net interest income after provision for credit losses$428 $4,891 $(4,463)

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 $259.3 million as of March 31, 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.

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Interest Income

Loans and fees on loans: The $9.5 million increase in interest income on the Company’s loan portfolio was attributable to increases in the average balances of loans HFI and HFS, which increased $98.2 million and $255