Company: NEWTP
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001587987-25-000141
Chunk: 171

Company: NewtekOne, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 171
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 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 LCM and amortized based on their estimated life, and impairment is recorded to the extent the amortized cost exceeds the asset’s FV. Net loss on loan servicing assets is shown net of amortization expense.

The larger loss in Net loss on loan servicing assets is due to the decrease in NSBF’s total portfolio of loans during the wind-down.

Servicing Income

The increase in servicing income was related to an increase of $106.4 million in the average total loan portfolio for which we earn servicing income period over period.

Net Gains on Sales of Loans

Net gains on sales of loans for the six months ended June 30, 2025 and 2024 were as follows:

 Six Months Ended June 30, 2025June 30, 2024Gains recognized on sales of loans$28,676 $44,753 Losses recognized on sales of loans(189)(1,897)Net gains on sales of loans$28,487 $42,856 

 Six Months Ended June 30, 2025June 30, 2024# of Loans$ Amount# of Loans$ AmountSBA 7(a) loans originated1,042 $418,975 1,093 $438,017 SBA 7(a) guaranteed loans sold578 142,686 924 325,568 Average net sale price as a percent of principal balance1110.94 %111.12 %

1    Realized gains greater than 110.00% must be split 50/50 with the SBA in accordance with SBA regulations. The realized gains recognized above reflect amounts net of split with the SBA.

For the six months ended June 30, 2025, the average sale price on SBA 7(a) loans as a percent of principal balance was 110.94% compared to 111.12% for the prior period. The decrease in sales prices in 2025 resulted from lower demand. The decrease in overall net gains on sales of loans resulted from lower volumes of sales compared to the prior year at