Company: NEWTP
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001587987-25-000141
Chunk: 130

Company: NewtekOne, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 130
---
,19660,903Newtek Bank:Interest bearing deposits in banks180,013346,207FHLB borrowing availability157,90839,780Lines of credit at other financial institutions30,00030,000Total liquidity sources$287,241$483,831

1    Availability as of June 30, 2025 and December 31, 2024 is based on collateral pledged as of that date.

The Company has restricted cash of $23.2 million as of June 30, 2025. NSBF holds $6.8 million of the Company’s restricted cash, which includes reserves in the event payments are insufficient to cover interest and/or principal with respect to securitizations and loan principal and interest collected which are due to loan participants. In addition, the Company has funded a $10.0 million account at Newtek Bank to fund certain of NSBF’s potential obligations to the SBA pursuant to the Wind-down Agreement. of which the Company is a guarantor. The majority of the Company’s remaining restricted cash is held by the parent company.

The Company generated and used cash as follows:

Six Months Ended June 30,20252024Net cash used in operating activities$(260,518)$(35,751)Net cash used in investing activities(124,076)(97,763)Net cash provided by financing activities216,509 155,846 Net (decrease) increase in cash and restricted cash(168,085)22,332 Cash and restricted cash—beginning of period (NOTE 2)381,374 184,006 Cash and restricted cash—end of period (NOTE 2)$213,289 $206,338 

During the six months ended June 30, 2025, operating activities used cash of $260.5 million, consisting primarily of $508.4 million of funding loans held for sale. This use of cash was offset by (i) $217.3 million of proceeds from the sale of loans; and (ii) $32.8 million from the payment of settlement receivables.

Cash used by investing activities was $124.1 million primarily comprised (i) $171.6 million in the net increase in loans held for investment, at cost; and (ii) $3.9 million in purchases of available-for-sale securities. These uses were partially offset by (i) a $34.0 million net decrease in loans held for investment, at fair value; and (ii