Company: NEWTP
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001587987-25-000084
Chunk: 52

Company: NewtekOne, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 52
---
idity

The following table summarizes the Company’s available sources of liquidity as of March 31, 2025 and December 31, 2024:

Availability as of March 31, 2025December 31, 2024Unrestricted cash$10,201$6,941Lines of credit at other commercial banks118460,903Newtek Bank:Interest bearing deposits in banks259,782346,207FHLB borrowing availability141,06339,780Lines of credit at other financial institutions30,00030,000Total liquidity sources$341,230$483,831

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

76

The Company has restricted cash of $24.2 million as of March 31, 2025. NSBF holds $5.0 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:

Three Months Ended March 31, 2025Three Months EndedMarch 31, 2024Net cash used in operating activities$(60,704)$(38,674)Net cash used in investing activities(79,245)(43,805)Net cash provided by financing activities52,709 61,679 Net decrease in cash and restricted cash(87,240)(20,800)Cash and restricted cash—beginning of period (Note 2)381,374 184,006 Cash and restricted cash—end of period (Note 2)$294,134 $163,206 

During the three months ended March 31, 2025, operating activities used cash of $60.7 million, consisting primarily of $247.4 million of funding loans held for sale. This use of cash was offset by (i) $142.9 million of proceeds from the sale of loans; and (ii) $46.4 million from the payment of settlement receivables.

Cash used by investing activities was $79