Company: NEWTP
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050582
Chunk: 327

Company: NewtekOne, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 327
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 30,2025/2024 Increase/(Decrease)20252024AmountPercentDividend income$425 $374 $51 13.6 %Net loss on loan servicing assets(4,493)(1,786)(2,707)151.6 Servicing income6,076 4,958 1,118 22.5 Net gains on sales of loans9,563 25,675 (16,112)(62.8)Net (loss) gain on residuals in securitizations(1,450)— (1,450)100.0 Net gain (loss) on loans under the fair value option29,250 (4,085)33,335 (816.0)Technology and IT support income— 3,311 (3,311)(100.0)Electronic payment processing income11,053 11,777 (724)(6.1)Other noninterest income9,964 11,627 (1,663)(14.3)  Total noninterest income$60,388 $51,851 $8,537 16.5 %

Dividend Income

For the three months ended September 30, 2025 and 2024, dividend income was dependent on the earnings of our joint ventures.

88

Net Loss on Loan Servicing Assets

The Company accounts for servicing assets in accordance with ASC Topic 860-50 - Transfers and Servicing - Servicing Assets and Liabilities. The Company earns servicing fees from the guaranteed portions of SBA 7(a) loans it originates and sells, from the SBA 7(a) loan securitizations sponsored by NSBF, and from servicing the ALP portfolios in securitizations sponsored by NCL JV (dissolved in September 2025), TSO JV and Newtek ALP Holdings. Servicing assets for loans originated by the Company’s nonbank subsidiaries are measured at FV at each reporting date and the Company reports changes in the FV of servicing assets in earnings in the period in which the changes occur. The valuation model for servicing assets incorporates assumptions including, but not limited to, servicing costs, discount rate, prepayment rate, and default rate. Considerable judgment is required to estimate the fair value of servicing assets and, as such, these assets are classified as Level 3 in our fair value hierarchy. Servicing assets for loans originated by Newtek Bank are measured at L