Company: NEWTP
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050582
Chunk: 312

Company: NewtekOne, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 312
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’s earnings to maintain the ACL on loans at a level that the Company believes is appropriate in relation to the estimated losses inherent in the loan portfolio.

For the nine months ended September 30, 2025 and 2024, there was a provision for credit losses of $30.3 million and $16.7 million, respectively. The increase was due to increases in net charge-offs, specific reserves on individually evaluated loans, and balances of loans held for investment at amortized cost, across all products but specifically SBA 7(a) loans.

77

Net Interest Income and Margin

Average Balances and Yields. The following table presents information regarding average balances for assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amount of interest expense on average interest-bearing liabilities, and the resulting average yields and costs. The yields and costs for the periods indicated are derived by dividing the income or expense by the average balances for assets or liabilities, respectively, for the periods presented and annualizing that result. Loan fees are included in interest income on loans.

Nine Months Ended September 30,20252024Average BalanceInterestAverage Yield / RateAverage BalanceInterestAverage Yield / RateInterest-earning assets:Other interest-earning assets$271,996 $8,599 4.23 %$157,415 $6,177 5.24 %Investment securities17,485 690 5.28 29,641 1,168 5.26 Loans held for sale413,150 31,348 10.14 210,110 17,743 11.28 Loans held for investment1,152,504 72,865 8.45934,010 62,603 8.95Total interest-earning assets1,855,135 113,502 8.181,331,176 87,691 8.80Less: Allowance for credit losses on loans(35,850)(16,663)Noninterest earning assets213,246 206,952 Total assets$2,032,531 $1,521,465 Interest-bearing liabilities:Demand$112,218 $788 0.94 %$33,442 $282 1.13 %Savings and NOW404,063 13,409 4.44 252,295 9,603 5.08 Money Market51,390 1,