Company: NEWTP
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050582
Chunk: 106

Company: NewtekOne, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 106
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 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 $127.2 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 nine months ended September 30, 2025 and 2024 were as follows:

 Nine Months Ended September 30, 2025September 30, 2024Gains recognized on sales of loans$38,239 $72,089 Losses recognized on sales of loans(189)(3,558)Net gains on sales of loans$38,050 $68,531 

 Nine Months Ended September 30, 2025September 30, 2024# of Loans$ Amount# of Loans$ AmountSBA 7(a) loans originated1,589 $606,228 1,732 $680,659 SBA 7(a) guaranteed loans sold788 211,772 1,449 501,570 Average net sale price as a percent of principal balance1110.67 %111.00 %

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 nine months ended September 30, 2025, the average sale price on SBA 7(a) loans as a percent of principal balance was 110.67% compared to 111.00% 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 lower market premiums than the prior year. Additionally, the decrease in SBA 7(a) guaranteed loans sold is primarily due to management holding the loans for a longer period of time.

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The table below provides selected statistics on the historical net premiums on sales of guaranteed portions of SBA 7(a) loans realized by