Company: NEWTP
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001587987-25-000084
Chunk: 111

Company: NewtekOne, Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 111
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March 31, 2024$13,571 1 Included within Net loss on loan servicing assets in the Consolidated Statements of Income  2 Included within Net gains on sales of loans in the Consolidated Statements of Income

Servicing fee income earned for the three months ended March 31, 2025 and 2024 was as follows:Three Months Ended March 31, 202520252024Servicing fee income$5,525$5,357

F-31

NOTE 7—GOODWILL AND INTANGIBLE ASSETS:GoodwillThe following table summarizes the carrying amount of goodwill:March 31, 2025December 31, 2024Banking$271 $271 Payments13,814 13,814 Total goodwill$14,085 $14,085 Banking: The goodwill in the banking segment was generated from the Acquisition, representing the the excess of the purchase price over the fair value of the net assets acquired.Payments: The goodwill in the payments segment was generated from acquisitions by the legal entities within this segment prior to the consolidation of those entities into NewtekOne following the Acquisition.

Intangible AssetsThe following table summarizes intangible assets:At March 31, 2025At December 31, 2024Gross carrying AmountAccumulated AmortizationNet Carrying amountGross carrying AmountAccumulated AmortizationNet Carrying amountBanking - Core Deposits$1,040 $(414)$626 $1,040 $(373)$667 Core Deposits Intangible. CDI is a measure of the value of non-interest-bearing and interest-bearing checking accounts, savings accounts, and money market accounts that are acquired in a business combination. The fair value of the CDI stemming from any given business combination is based on the present value of the expected cost savings attributable to the core deposit funding, relative to an alternative source of funding. The CDI relating to the NBNYC Acquisition will be amortized over an estimated useful life of 10 years using the sum of years digits depreciation method. The Company evaluates such identifiable intangibles for impairment when an indication of impairment exists.

Amortization expense for the three months ended March 31, 2025 and 2024 is as follows, and is included in Depreciation and amortization on the Consolidated Statements of Income:

Three Months Ended March 31,20252024Amortization expense$41$208

The remaining estimated aggregate future amort