Company: NEWTP
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001587987-25-000141
Chunk: 306

Company: NewtekOne, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 306
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40,565 8.91Total interest-earning assets1,837,494 74,408 8.171,291,283 56,420 8.79Less: Allowance for credit losses on loans(35,931)(14,394)Noninterest earning assets201,783 199,395 Total assets$2,003,346 $1,476,284 Interest-bearing liabilities:Demand$136,176 $511 0.76 %$24,951 $92 0.74 %Savings and NOW390,422 8,749 4.52 252,280 6,363 5.07 Money Market46,982 984 4.22 20,759 456 4.42 Time362,354 8,958 4.99 219,390 5,530 5.07 Total deposits935,934 19,202 4.14 517,380 12,441 4.84 Borrowings689,189 27,350 8.00 646,318 25,947 8.07 Total interest-bearing liabilities1,625,123 46,552 5.78 1,163,698 38,388 6.63 Noninterest-bearing deposits— 204 Noninterest-bearing liabilities67,647 64,303 Shareholders’ equity310,576 248,079 Total liabilities and shareholders' equity$2,003,346 $1,476,284 Net interest income and interest rate spread$27,856 2.39 %$18,032 2.15 %Net interest margin3.06 %2.81 %Ratio of average interest-earning assets to average interest bearing liabilities113.07 %110.96 %

In response to market conditions and consistent with its business plan, Newtek Bank has been focused on increasing its liquidity position by raising additional deposits and maintaining a significant portion of its liquidity in the form of cash held at the Federal Reserve, approximately $179.7 million as of June 30, 2025, as opposed to long-term investments. In addition, Newtek Bank management continues to closely monitor market conditions with a focus on its asset liability management policies, as well as closely monitoring, among other things, capital levels, to ensure compliance with regulatory guidelines and the OCC Operating Agreement. The increase in the average balance of loans