Company: NEWTP
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001587987-25-000141
Chunk: 161

Company: NewtekOne, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 2
Chunk 161
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$587 $14,672 $14,085 $667 $14,752 

The change in goodwill and intangible assets relates to amortization of intangible assets during the six months ended June 30, 2025. 

70

A sensitivity analysis of the loan servicing assets at fair value to adverse changes in significant assumptions as of June 30, 2025 and December 31, 2024 is as follows:

June 30, 2025December 31, 2024Discount factorEffect on fair value of a 100 basis point adverse change$(694)$(831)Effect on fair value of a 200 basis point adverse change(1,338)(1,604)Cumulative prepayment rateEffect on fair value of a 100 basis point adverse change$(62)$(85)Effect on fair value of a 500 basis point adverse change(311)(423)Average cumulative default rateEffect on fair value of a 100 basis point adverse change$(46)$(72)Effect on fair value of a 500 basis point adverse change(230)(358)

The sensitivity analysis presents the hypothetical effect on fair value of the servicing assets due to the change in significant assumptions. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value is not linear. Additionally, the sensitivity analysis shocks each significant assumption individually, while keeping all other assumptions unchanged. In practice, changes in one assumption generally impact other assumptions, which could increase or lessen the effect of the change. 

Residuals in Securitizations, at Fair Value

The residuals in securitizations, at fair value arise from a securitization that the Company closed on April 23, 2025. Residuals in securitizations were $77.7 million as of June 30, 2025. The Securitization Trust meets the definition of a VIE. The Company holds a variable interest in the VIE, however, the Company is not considered the primary beneficiary of the VIE, because the power over the activities that have the most significant impact on the economic performance of the Securitization Trust is held by the Class C Noteholder, and therefore, the Company is not required to consolidate the Securitization Trust. The Company’s beneficial interest in the Securitization Trust is evidenced by sole ownership of the Ownership Certificate and its beneficial interest in the credit risk of the se