Company: NEWTP
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050582
Chunk: 320

Company: NewtekOne, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 320
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 accompanying Notes to the Consolidated Financial Statements. Net income (loss) by operating segment is presented below:

Nine Months Ended2025/2024 Increase/(Decrease)September 30, 2025September 30, 2024AmountPercentBanking$30,866 $35,339 $(4,473)(13)%Alternative Lending60,445 34,147 26,298 77 %Technology1— (52)52 (100)%NSBF(13,612)(17,960)4,348 (24)%Payments12,556 14,173 (1,617)(11)%Corporate & Other20,732 6,048 14,684 243 %Eliminations(70,016)(39,166)(30,850)79 %Consolidated net income$40,971 $32,529 $8,442 26 %

1     As a result of commitments made to the Federal Reserve, the Company divested of NTS on January 2, 2025, and is no longer a reportable segment. See NOTE 4—INVESTMENTS: Intelligent Protection Management Corp.

Banking

The banking segment includes Newtek Bank as well as its consolidated subsidiary SBL. The financial results include the origination, sale, and servicing of SBA 7(a) loans, SBA 504 loans, C&I loans, CRE loans and ABL loans. In addition, Newtek Bank offers depository services. The results include $43.9 million of net interest income during the nine months ended September 30, 2025 compared to $28.2 million of net interest income during the nine months ended September 30, 2024. During 2025, the Company increased the average balances of loans HFI and HFS as well as the average outstanding accrual portfolio of loans HFI, which was partially offset by an increase in the provision for credit losses, resulting in higher net income for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Alternative Lending

Alternative Lending includes Newtek ALP Holdings (NALH) and its subsidiaries. The Company has originated loans under its Alternative Lending Program since 2019. Prior to July 1, 2024, the Company originated ALP loans with the intent to sell to a JV. While the Company continues to source JV partners to participate