Company: NEWTP
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001587987-25-000141
Chunk: 174

Company: NewtekOne, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 174
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 from the reversal of the previous gains on ALP loans to consummate the NALP 2025-1 transaction as noted above.

Technology and IT Support Income

Technology and IT support income was $10.9 million for the six months ended June 30, 2024. There was no Technology and IT support income for the six months ended June 30, 2025, due to the sale of NTS. Refer to NOTE 4—INVESTMENTS: Intelligent Protection Management Corp.

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Other Noninterest Income

For the six months ended June 30, 2025 and 2024, other noninterest income was related primarily to loan origination fees (legal and packaging) on loans sold or carried at fair value. Other items that contributed to the $2.7 million decrease included a decrease on prepayment and late fees earned from SBA 7(a) loans. The Company originated 1,042 of SBA 7(a) loans compared to 1,093 loans for the six months ended June 30, 2025 and 2024, respectively. Adding to the decrease was $(0.1) million of net unrealized gains on joint ventures and other non-control investments for the six months ended June 30, 2025 compared to none in the prior period.

Non-Interest Expense

Six months ended June 30,2025/2024 Increase/(Decrease)20252024AmountPercentSalaries and employee benefits expense$44,451 $41,296 $3,155 7.6 %Technology services expense— 6,828 (6,828)(100.0)Electronic payment processing expense8,875 10,539 (1,664)(15.8)Professional services expense7,739 7,308 431 5.9 Other loan origination and maintenance expense7,704 5,259 2,445 46.5 Depreciation and amortization420 1,053 (633)(60.1)Other general and administrative costs14,297 9,440 4,857 51.5 Total noninterest expense$83,486 $81,723 $1,763 2.2 %

Salaries and Employee Benefits Expense

The increase in salaries and employee benefits was primarily attributable to increased benefits costs, primarily bonus accruals, higher medical and other insurance costs.

Technology Services Expense 

The $6.8 million decrease in technology