Company: NEWTP
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001587987-25-000084
Chunk: 38

Company: NewtekOne, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 38
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ations.

Technology and IT Support Income

Technology and IT support income was $5.8 million for the three months ended March 31, 2024. There was no Technology and IT support income for the three months ended March 31, 2025, due to the sale of NTS. Refer to NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION: Sale of NTS.

Other Noninterest Income

For the three months ended March 31, 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 increase included prepayment and late fees earned from SBA 7(a) loans. The Company originated 542 of SBA 7(a) loans compared to 489 loans for the three months ended March 31, 2025 and 2024, respectively. The increase also includes $1.1 million of net unrealized gains on joint ventures and other non-control investments for the three months ended March 31, 2025 compared to none in the prior period.

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Non-Interest Expense

Three months ended March 31,2025/2024 Increase/(Decrease)20252024AmountPercentSalaries and employee benefits expense$21,316 $20,506 $810 4.0 %Technology services expense— 3,408 (3,408)(100.0)Electronic payment processing expense4,447 4,846 (399)(8.2)Professional services expense3,435 4,565 (1,130)(24.8)Other loan origination and maintenance expense4,417 2,244 2,173 96.8 Depreciation and amortization146 532 (386)(72.6)Other general and administrative costs7,416 5,058 2,358 46.6 Total noninterest expense$41,177 $41,159 $18 — %

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 $3.4 million decrease in technology services expenses for the three months ended March 31, 2025 corresponded with the NTS Sale. Refer to NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION: Sale of N